Mumbai, August 27 (TNA) Indian equity benchmarks closed lower on Wednesday, snapping their recent recovery streak, as weakness in IT, FMCG and auto stocks weighed on the market even as investors awaited Nvidia Corp's earnings, upcoming US inflation data, and continued to track developments in West Asia.
The Sensex fell 183.15 points, or 0.24 per cent, to close at 77,472.94, while the Nifty50 declined 126.80 points, or 0.52 per cent, to settle at 24,207.75. Losses were led by Infosys, which fell 1.84 per cent, Power Grid, down 1.77 per cent, and Bharti Airtel, which slipped 1.70 per cent. Offsetting some of the decline, top gainers included Kotak Mahindra Bank, up 3.70 per cent, UltraTech Cement, up 2.04 per cent, and Axis Bank, which added 1.69 per cent.
Broader Market and Sectoral Trends
In the broader markets, the Nifty MidCap index was down 0.1 per cent, while the Nifty SmallCap index bucked the trend to rise 0.81 per cent. Nifty IT and Nifty Consumer Durables emerged as the day's top laggards, with the IT index alone declining more than 1 per cent.
A Reversal From Tuesday's Gains
Wednesday's decline followed a stronger session a day earlier. On Tuesday, the Sensex had pared intraday losses to close 286.98 points, or 0.37 per cent, higher at 77,656.09, while the Nifty had risen 115.50 points, or 0.48 per cent, to settle at 24,334.55, driven by late buying amid a sharp drop in crude oil prices. InterGlobe Aviation, Adani Ports, Infosys, Trent, Titan and State Bank of India led Tuesday's gainers, while Eternal, HCL Tech, Power Grid and Bajaj Finserv were among the laggards.
What Weighed on Sentiment
Domestically, investors remained watchful of signs of moderating economic growth, with second-quarter GDP data due next week and growth expected to ease to 7.1 per cent from 7.8 per cent in the first quarter. Market participants were also parsing recent RBI communication on monetary policy, after meeting minutes raised questions among investors about the central bank's policy stance.
Globally, traders stayed cautious ahead of Nvidia Corp's earnings and upcoming US inflation data, while also continuing to monitor developments in West Asia. Market participants said the session's weakness in export-oriented and consumption-linked sectors reflected this broader caution, even as financials provided some cushion to the benchmark indices.