“Indian and global markets are witnessing selling because of the rising crude oil prices and as a result of the impact of the Israel-Palestine conflict’s uncertainty,” said Aamar Deo Singh, senior vice president at Angel One.
Foreign Portfolio Investors (FPIs) net sold shares worth ₹1831.84 crore on Wednesday. Domestic institutions were buyers to the tune of ₹1,469.50 crore, according to provisional data.
Brent crude futures rose 1.3% to $ 91 a barrel on concerns that the Israel-Hamas fighting could drag other oil-producing countries, like Iran, into the conflict. Elsewhere in Asia, China declined 0.8%, Hong Kong fell 1.10%, South Korea gained 0.10% and Taiwan dropped by 1.21%.
At home, shares of lenders and Reliance Industries led the decline. The Nifty Bank index dropped 1.2% with ICICI Bank, Kotak Mahindra and HDFC declining between 1% and 2%.
The Nifty has failed to move past the resistance levels of 19,850 on Wednesday, said Vaishali Parekh, vice president – technical research at Prabhudas Lilladher.
“During the session, the Nifty slipped further with weakness creeping in to slide below the 19,700 zone with bias turning weak,” said Parekh. “With today’s corrective move, we have a near-term support of 19,500 level. A decisive breach of this zone would give a further downside target of 19,400-19,200 levels.”Parekh also says that sentiment in Bank Nifty has also turned cautious.
NSE’s Volatility Index or VIX – a fear gauge – rose over 2.52% to 10.96 on Wednesday. But, the measure is still down 1.5% from a month ago.
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