Indian benchmark indices Sensex and Nifty experienced a volatile trading session on Thursday, with both indices paring early gains to close marginally lower. The losses were attributed to cautious trading ahead of the release of domestic inflation data, as well as losses in engineering and construction firm Larsen & Toubro.
The 30-share BSE Sensex declined 35.68 points or 0.06 per cent to settle at 61,904.52, after hitting the crucial 62,000 mark in opening deals. During the day, it hit a low of 61,823.07 and a high of 62,168.22. The NSE Nifty dipped 18.10 points or 0.10 per cent to end at 18,297.
The losses in Larsen & Toubro were largely due to concerns over rising commodity prices and supply chain disruptions, which have impacted the company’s operations. However, analysts remain optimistic about the company’s long-term prospects, given its strong order book and focus on infrastructure development.
Investors also remained cautious ahead of the release of India’s inflation data, which is expected to show a rise in consumer prices. This comes at a time when the Reserve Bank of India (RBI) has been keeping a close eye on inflation, and has already implemented a number of measures to curb rising prices.
Despite the cautious trading, there were some bright spots in the market. Shares of Reliance Industries, India’s largest private sector company, rose by 1.7 per cent on Thursday, following news of the company’s plans to invest in a renewable energy unit. Other notable gainers included HDFC Bank, which rose by 1.3 per cent, and ICICI Bank, which gained 0.8 per cent.
The market remains volatile, with investors keeping a close eye on global economic trends, as well as domestic factors such as inflation and government policy. While there are some concerns about rising commodity prices and supply chain disruptions, there are also opportunities for growth in sectors such as infrastructure and renewable energy. As such, investors are likely to remain cautious in the short-term, while keeping a long-term perspective on the Indian market.
