Indian stock market settles lower amid selling in IT and metal stocks

Mumbai, July 9 (IANS) The Indian stock markets closed lower after a volatile session on Wednesday amid selling in the IT and metals stocks, especially in Vedanta and Hindustan Zinc.

Sensex settled at 83,536.08, down 176.43 points or 0.21 per cent. The 30-share index opened in negative territory at 83,625.89 against the last session's closing of 83,712.51. However, it showed some volatility, hitting an intra-day high at 83,781.36 before closing.

Nifty fell 46.40 points or 0.18 per cent to end the session at 25,476.10.

Following the allegations from US short-seller Viceroy Research, Vedanta and Hindustan Zinc shares traded in red in the entire session. Vedanta fell 3.29 per cent to settle at Rs 441.30, and Hindustan Zinc closed at 425.30, down 2.50 per cent. The company has denied all allegations.

"Despite prevailing global uncertainties, Nifty opened on a flat note. The index continued to trade within a narrow range, reflecting a sideways trajectory throughout the session," said Sundar Kewat of Ashika Stock Broking.

"Sector-wise, strength was observed in Consumer Goods, Automobiles, Consumption, and Financial Services, while weakness persisted in Metals, Realty, and IT stocks," Kewat added.

From the Sensex basket, Bajaj Finance, Power Grid, Hindustan Unilever, Asian Paints, Mahindra and Mahindra, ITC, NTPC, and HDFC Bank settled in green.

Axis Bank, Reliance, Tata Motors, Titan, Infosys, Bharti Airtel, TCS, and Hand CL Tech ended trading in negative territory.

Meanwhile, 29 shares declined and 21 advanced from the Nifty50.

Nifty Next50, Nifty Midcap 100, and Nifty100 fell among broader indices. Nifty Small Cap 100 advanced. At the same time from the sectoral indices, Nifty Bank, Nifty IT closed lower, while Nifty Auto, Nifty Finance Services settled higher.

Meanwhile, the Indian currency encountered formidable resistance in breaching the 85.40 mark in the past three days amid dollar bargain buying.

"The persistent fragility rippling through Asian currencies has exerted a profound downward pressure on the local rupee. This susceptibility has been compounded by the resurgent strength of the US," said Dilip Parmar, Senior Research Analyst, HDFC Securities.

--IANS

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