Sensex Gives Up 533-Point Gain, Ends Lower For Third Straight Day As Oil, FII Outflows Weigh

Indian equities extended their losing streak for a third consecutive session on Wednesday, with late-session selling wiping out most of the market’s strong intraday gains. Investors remained cautious as crude oil prices stayed above USD 100 a barrel, global bond yields remained elevated and foreign investors continued to pull money out of Indian stocks.

The BSE Sensex closed at 72,480.29, down 48.78 points, or 0.07 per cent. The benchmark had surged 533 points during the day to touch 73,062.23 before giving up almost all of those gains. The NSE Nifty fell 95.75 points, or 0.42 per cent, to settle at 22,620.45.

The late weakness reflected continued nervousness among investors despite the brief recovery earlier in the session. Eternal, Sun Pharma, Titan, Adani Ports, Tata Steel and HDFC Bank were among the major Sensex laggards, while Kotak Mahindra Bank, ICICI Bank, InterGlobe Aviation and Axis Bank ended higher.

Oil remained a major concern for the domestic market. Brent crude rose 0.54 per cent to USD 103.10 a barrel, keeping pressure on expectations around inflation and India's import bill. Higher global borrowing costs added to the uncertainty, while foreign portfolio investors continued their selling spree.

According to exchange data, foreign institutional investors sold Indian equities worth Rs 9,980.22 crore on Tuesday, adding to concerns over sustained overseas outflows.

Vinod Nair, head of research at Geojit Investments, said profit-taking at higher levels, rising oil prices and elevated global bond yields were restricting risk appetite. He said investors were closely watching crude prices, inflation expectations and the possible impact on global monetary policy.

Ponmudi R, CEO of Enrich Money, said uncertainty over a regional conflict and its potential impact on energy supplies continued to keep investors cautious.

Globally, Asian markets were mixed, with Kospi ending lower, while Shanghai, Nikkei and Hang Seng gained. European markets also traded unevenly after US stocks ended lower on Tuesday.

The latest decline follows Tuesday's fall of 242.65 points in the Sensex and 64.05 points in the Nifty, highlighting the fragile sentiment at the end of September.