Indian stock market ended the highly volatile session in negative territory on Wednesday. BSE Sensex declined over 400 points from the day's high to close at 72,781.89. The index was trading higher in early trade and touched an intraday high at 73,195.26. With respect to last day's closing of 73,033.78, the 30-share index closed 251.89 points or0.34 per cent lower. 

Meanwhile, Nifty50 ended the session at 22,622.70, down 99.25 points or 0.44 per cent from the last closing of 22,721.95.  

Key Factors Dragged Market Sentiment Today

According to an analyst, three key factors dragged market sentiment today: 1) a spike in wholesale price-based inflation, 2)  Elevated crude oil prices, 3) profit booking. 

1- Wholesale Inflation: India's wholesale price-based inflation rose to 11.39 per cent in September, compared to 9.92 per cent in August, on rising prices of food, manufactured items, and fuel and power.

2- Crude Prices: Brent crude, the global oil benchmark, remained in the range of $105- $106.1 per barrel, weighing on investors' sentiment. 

3- Profit Booking: Investors indulged in profit booking after the domestic market soared significantly in the past session. Additionally, foreign Institutional Investors continued their selling momentum.

Also Read: Crude Oil Tops $100: Why Energy Expert Warns Of Severe Margin Risks For OMCs

Experts Opinions

"Indian equities ended lower in a volatile session as a stronger-than-expected wholesale inflation reading and elevated crude prices prompted investors to pare positions following Tuesday’s sharp rally. Support from index-heavy IT stocks and Reliance Industries limited the benchmark decline, but selling across automobiles, pharmaceuticals, metals, real estate and consumer-oriented stocks pointed to broader weakness. The uneven performance suggests that the pullback extended well beyond routine profit-taking in the benchmarks, reflecting continued caution over inflation, energy costs and foreign fund flows," said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth. 

Sachin Gupta, VP - Technical Research at Choice Broking Private Limited, said Indian equities ended lower on 14 October, with the Nifty closing at 22,622.70, down 99.25 points (-0.44%).
 
"The index opened nearly flat at 22,715.75 and initially moved higher to an intraday high of 22,757.95, followed by sideways trading during the first half of the session. Selling pressure emerged later, dragging the index to an intraday low of 22,558.95 before a modest recovery lifted it to the closing level. The session reflected profit booking after the previous day’s sharp rally, with the index struggling to sustain higher levels," said Gupta. 

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