Mumbai (Maharashtra) [India], September 1 : Benchmark domestic indices ended marginally lower on Tuesday as escalating geopolitical tensions in the Middle East, higher crude oil prices and concerns over elevated global interest rates kept investors cautious, despite stronger-than-expected domestic economic growth.
The NSE Nifty 50 index closed at 24,055.80, down 24.60 points or 0.10 per cent, while the BSE Sensex ended at 76,944.28, lower by 12.99 points or 0.02 per cent.
Market sentiment remained cautious as investors weighed India's strong economic growth against increasing global uncertainties.
Vinod Nair, Head of Research, Geojit Investments Limited, said, "Markets are increasingly balancing India's strong growth momentum against mounting global uncertainties. Better-than-expected GDP growth underscores the resilience of domestic demand and the broader economy."
However, he said escalating geopolitical tensions in the Middle East and a more hawkish US Federal Reserve have renewed concerns over inflation and the possibility of interest rates remaining elevated for a longer period.
"Persistent cost pressures may weigh on both corporate earnings and the pace of demand recovery. At the same time, higher U.S. bond yields and renewed foreign capital outflows have kept investor sentiment cautious," Nair added.
He noted that financial stocks faced the most pressure, while FMCG and IT sectors continued to attract defensive buying.
The sectoral indices on the NSE reflected a mixed trend. Nifty FMCG gained 0.94 per cent, Nifty IT rose 0.98 per cent, Nifty Media gained 0.26 per cent and Nifty Oil and Gas was up 0.35 per cent.
All other sectors mentioned closed under pressure. Nifty Auto declined 1.22 per cent, Nifty Metal lost 0.03 per cent, Nifty Pharma fell 1.45 per cent and Nifty PSU Bank declined 1.21 per cent.
Among the Nifty 50 stocks, ITC, Bharti Airtel, HCL Tech and Reliance were among the top gainers. Shriram Finance, Maruti and Nestle were among the top losers of the day.
Crude oil prices remained elevated, adding to concerns over inflation and costs. Brent crude oil prices surged by more than 2 per cent to USD 92.33 per barrel at the time of reporting.
Precious metals, however, witnessed a decline. Gold prices fell by more than 1.29 per cent to Rs 1,52,460 per 10 grams for 24 karats, while silver prices declined 1.73 per cent to Rs 2,29,799 per kg at the time of reporting.
Other Asian markets ended mixed on Tuesday. Japan's Nikkei 225 gained 0.28 per cent to close at 66,496, while Taiwan's weighted index rose 1.75 per cent to 46,948. South Korea's KOSPI gained 0.23 per cent to close at 6,835.
On the other hand, Singapore's Straits Times declined 0.78 per cent to close at 5,710, while Hong Kong's Hang Seng index fell 1.06 per cent to close at 25,299.