Mumbai (Maharashtra) [India], September 10 (ANI): Indian equity markets closed marginally higher on Thursday, with benchmark indices ‘eking out gains’ despite Brent crude oil prices climbing to around USD 102 per barrel, as investors remained cautious amid geopolitical tensions and inflation concerns.
The Nifty 50 closed at 23,477.80, gaining 46.30 points or 0.20 per cent, while the BSE Sensex ended at 74,902.59, up 138.36 points or 0.19 per cent.
The market remained volatile during the session, which also coincided with the expiry of key monthly derivative contracts, as investors tracked movements in crude oil prices, the rupee and domestic bond yields.
Vinod Nair, Head of Research at Geojit Investments, said the prospect of synchronised monetary tightening has strengthened as higher crude prices and prolonged geopolitical tensions have reinforced concerns over energy-led inflation.
"The prospect of synchronized monetary tightening strengthened as higher crude prices and prolonged geopolitical tensions reinforced energy-led inflation concerns. Investors now await key US inflation data for cues on the rate trajectory," Nair said.
He added that rising global bond yields and concerns over a potential yen carry trade unwind amid expectations of a Bank of Japan rate hike and a stronger yen could keep capital flows into emerging markets under pressure.
"Consequently, the domestic market endured a choppy session on expiry day amid weak Asian cues, as investor focus remained closely tethered to the volatility in crude prices," Nair said.
According to Nair, strong August equity fund flows and moderation in the SIP stoppage ratio provided some support to the market, although sentiment remained tempered by the depreciating rupee and firming domestic bond yields.
Among sectoral indices on the NSE, Nifty Metal declined 0.65 per cent, followed by Nifty Pharma, which fell 0.51 per cent. Nifty Auto declined 0.41 per cent, Nifty FMCG fell 0.27 per cent and Nifty IT slipped 0.08 per cent.
On the other hand, Nifty Media rose 0.55 per cent, Nifty PSU Bank gained 0.39 per cent and Nifty Private Bank advanced 0.34 per cent.
Brent crude oil prices surged more than 1.2 per cent to trade around USD 102 per barrel at the time of reporting, keeping inflation and input-cost concerns in focus.
In the commodities market, gold prices remained largely flat at Rs 1,53,612 per 10 grams for 24-carat gold, while silver declined more than 1 per cent to Rs 2,41,134 per kg.
The Indian rupee was trading at Rs 95.44 against the US dollar.
Asian markets remained under pressure during the session. Japan's Nikkei 225 declined 0.27 per cent to close at 64,966, Singapore's Straits Times fell 0.70 per cent to 5,689, Hong Kong's Hang Seng declined 1.48 per cent to 24,906, Taiwan's Weighted Index fell 0.52 per cent to 46,940, while South Korea's KOSPI declined 0.25 per cent to 7,033. (ANI)
Nifty ends higher, Sensex gains 138 points as markets shrug off crude oil surge
