The domestic benchmark indices declined on Wednesday, paring their early gains, dragged down by offloading in<a href="https://www.mid-day.com/business/business-news/article/stock-market-today-sensex-nifty-slightly-up-led-by-it-stocks-amid-global-uncertainty-23640052" target="_blank" rel="none noopener"> IT stocks</a> in late session.
The stock market was open for trading today on August 26, despite it being a bank holiday in several states due to Eid-e-Milad and Onam.
<h2>Market movement</h2>
"Indian equity benchmarks remained range-bound during Wednesday's session, with the Nifty slipping below the crucial 24,300 mark while the Sensex remained below 77,500. Although Brent crude oil prices cooling towards the USD 85 per barrel mark provided some relief and supported investor sentiment, persistent geopolitical uncertainties kept market participants cautious. With limited directional triggers, investors remained focused on sectoral rotation and stock-specific opportunities," Bajaj Broking Research said.
The 30-share BSE Sensex slipped 183.15 points, or 0.24 per cent, to settle at 77,472.94. The 50-share NSE Nifty declined 126.80 points, or 0.52 per cent, to end at 24,207.75.
<a href="https://www.mid-day.com/business/stock-market/article/stock-market-update-sensex-up-275-points-as-crude-oil-prices-ease-to-usd-86-per-barrel-23646708" target="_blank" rel="none noopener">During the initial trade Sensex jumped 275.63 points</a> or 0.35 per cent at 77,931.72, while the Nifty gained 33.05 points or 0.14 per cent at 24,367.60.
"On Wednesday, the Nifty 50 pared early gains to end 0.5 per cent lower at 24,207, despite opening in green on softer crude prices and positive Asian cues. IT, FMCG and Consumer durables weighed on the benchmark, while broader markets were mixed with the Nifty Midcap 100 declining 0.1 per cent and the Nifty Smallcap 100 advancing 0.8 per cent," Siddhartha Khemka Head of Research, Wealth Management, Motilal Oswal Financial Services said.
Among the Sensex constituents, Kotak Mahindra Bank, UltraTech Cement, Axis Bank and Tata Steel were among the major gainers.&nbsp;
<a href="https://www.mid-day.com/business/business-news/article/infosys-shares-decline-nearly-3-per-cent-after-guidance-cut-23641366" target="_blank" rel="none noopener">Infosys</a>, Bharti Airtel, Larsen &amp; Toubro, Power Grid, Tech Mahindra, NTPC, Mahindra &amp; Mahindra and Reliance Industries were among the major laggards.
On Tuesday, supported by late buying the Sensex bounced back and gained 286.98 points, or 0.37 per cent, to settle at 77,656.09. while the Nifty recovered to advance 115.50 points, or 0.48 per cent, at 24,334.55.
<h2>Why did IT stocks decline?</h2>
"Inflation concerns receded on tempered US sanctions on Iran, easing domestic bond yields and lifting banking stocks, while metals gained on better realization prospects. However, these gains were largely offset by weakness in IT stocks after the <a href="https://www.mid-day.com/news/world-news/article/trump-administration-begins-white-house-review-of-h-1b-visa-overhaul-proposal-23646695" target="_blank" rel="none noopener">US paused visa appointments amid an immigration crackdown</a> which rekindled margin pressure concerns. Investors now await the US Core PCE print for greater clarity on the rate trajectory. A contained core reading would indicate that the recent energy-led inflation spike is transitory, easing rate concerns and supporting flows into emerging markets," Vinod Nair, Head of Research, Geojit Investments said.
According to news agency PTI, Brent crude, the global oil benchmark, dropped 2.96 per cent to USD 85.96 per barrel, while Foreign Institutional Investors (FIIs) bought equities worth Rs 1,593.53 crore on Tuesday.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index all ended higher.
(With inputs from PTI)

Sensex slid 183.15 points, or 0.24 per cent, to settle at 77,472.94, while the Nifty fell 126.80 points, or 0.52 per cent, to end at 24,207.75

Sensex, Nifty lose intra day gains as IT stocks weigh on benchmark indices

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The 30-share BSE Sensex slipped 183.15 points, or 0.24 per cent, to settle at 77,472.94. The 50-share NSE Nifty declined 126.80 points, or 0.52 per cent, to end at 24,207.75

Sensex falls 183 points, Nifty drops over 125 points as IT stocks weigh on indices

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Home / Business / Stock Market / Article / Sensex falls 183 points, Nifty drops over 125 points as IT stocks weigh on indices