Sensex falls 250 pts from day's high, Nifty below 23,800: 3 key reasons behind market paring gains

Stock market today news: Sensex, Nifty see profit booking in trade. 

• Sensex and Nifty trimmed gains amid profit booking on Wednesday.
• FIIs sold equities worth Rs 4,741 crore, rupee hit record low.
• Brent crude prices surged 40% since Iran conflict began.

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The benchmark equity indices Sensex and Nifty trimmed their intraday gains on Wednesday amid profit booking.

In early trade today, Sensex jumped 929.38 points or 1.22 percent to an intraday high of 77,000.22, while the broader Nifty was at 23,862.25, up 281.1 points or 1.19 percent.

However, profit booking emerged thereafter. At around 2:45 pm, the Sensex was at 76,805.92, still up 735.08 points or 0.97 percent. The Nifty was at 23,793.90, up 212.75 points or 0.9 percent.

Key reasons behind market paring gains 

1) Profit booking: Some profit taking emerged after sharp gains in the early session today. The markets have consistently rose for the previous two trading sessions.

2) FII selling: Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,741.22 crore on Tuesday. The FIIs have been net selllers in the month of March so far and have cumulatively sold more than Rs 66,000 crore.

3) Rupee at fresh low: The Indian rupee fell to its lifetime low, extending a rough patch as the raging conflict in the West Asia kept oil prices elevated, raising economic risks for India while also sapping capital flows. The rupee fell to 92.62 per dollar, eclipsing its previous low of 92.4750 hit last week.

Brent crude oil prices have climbed about 40% since the Iran War began. The conflict has since sent shockwaves throughout global markets as energy importing economies grapple with the most severe supply disruption in decades.

Technical outlook 

According to Anand James, Chief Market Strategist at Geojit Investments, the Nifty has sustained momentum after achieving the 23,600 level. "Expect the 23,700 region to pose a challenge. A direct move above this is required to target 23,990. The 23,550 level will need to hold in case of early weakness to support further upside. A breach could drag the index towards the 23,300-23,130 zone, though a sharp fall is less likely," he said.

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