Sensex loses 304 points, Nifty finishes at 17,245

International oil benchmark Brent rose 2.12% to $117.8 a barrel.

International oil benchmark Brent rose 2.12% to $117.8 a barrel.

Benchmark BSE Sensex pared early gains, falling 304 points on Wednesday as investors rallied after recent gains on concerns over inflation and supply constraints.

Despite a solid start, the 30-stock BSE barometer fell 304.48 points, or 0.53%, to settle at 57,684.82. On the day, it fell 420.71 points, or 0.72%, to 57,568.59.

The broader NSE Nifty fell 69.85 points, or 0.4%, to close at 17,245.65.

Among Sensex stocks, HDFC fell the most, falling 2.36%. Kotak Mahindra Bank, HDFC Bank, Bharti Airtel, Sun Pharma, Maruti Suzuki India, Mahindra & Mahindra and Asian Paints also declined.

In contrast, Dr. Reddy’s Laboratories, Tata Steel, ITC and Power Grid were the prominent winners.

“After the recent rally, the market is turning cautious. Volatility has returned due to inflationary pressures triggered by supply constraints. While input costs are rising steadily and demand is falling due to rising Covid cases in parts of the world, war and high commodity prices are impacting earnings growth, which may result in a downgrade of the outlook,” said Vinod Nair, Head of Research at Geojit Financial Services.

Stock exchanges in Tokyo, Hong Kong, Seoul and Shanghai ended with gains after US stocks closed sharply higher in the overnight session. European stocks also traded higher.

Meanwhile, international oil benchmark Brent rose 2.12% to $117.8 a barrel.

Foreign institutional investors (FIIs) were net buyers as they bought £384.48 billion worth of shares, according to stock market data on Tuesday.

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