Sensex Erases Intraday Gains of 500 Points
The Indian stock market experienced late-session volatility, with the benchmark BSE Sensex erasing substantial intraday gains. The Sensex had rallied by over 500 points during the session, supported by buying interest in the IT sector, before closing 114.19 points (0.15%) lower at 75,200.85.
The IT sector was a strong performer during the day, buoyed by the currency market where the Indian rupee hit record lows against the U.S. dollar, providing a mechanical earnings tailwind for export-focused firms. However, profit-booking near key resistance levels and concerns over elevated crude oil prices led to a late-day sell-off.
Technical Resistance Triggers Sectoral Profit-Taking
Market analysts noted that the pullback was largely technical, as the Nifty IT index and other major sectoral indices faced stiff resistance at higher levels. The combination of a depreciating rupee, high import bills due to crude oil prices, and geopolitical uncertainties prompted institutional investors to lock in profits, leading to a negative close for the day.
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