Indian stock markets experienced a downturn as both the Sensex and Nifty closed lower, primarily driven by a sharp rally in global crude oil prices amid escalating geopolitical tensions and renewed inflation concerns.
Key Points
- Indian benchmark indices, Sensex and Nifty, both ended lower, with Sensex dropping 388.19 points and Nifty declining 112.10 points.
- A significant rebound in Brent crude oil prices, which jumped 2.18 per cent to USD 89.63 per barrel, was the primary factor impacting investor sentiment.
- Geopolitical uncertainties, including disruptions in the Strait of Hormuz and US-Iran negotiations, contributed to the surge in oil prices and heightened inflation risks.
- Major laggards on the Sensex included UltraTech Cement, Axis Bank, and Bajaj Finance, while Eternal, Infosys, and Titan saw gains.
- Foreign Institutional Investors (FIIs) remained net buyers, purchasing equities worth Rs 1,974.76 crore on the preceding trading day.
Benchmark indices Sensex and Nifty ended lower on Tuesday as a sharp rally in crude oil prices due to geopolitical uncertainties dented investors' sentiment.
The 30-share BSE Sensex dropped 388.19 points, or 0.49 per cent, to settle at 78,154.25. During the day, it tanked 494.18 points, or 0.62 per cent, to 78,048.26.
The 50-share NSE Nifty declined 112.10 points, or 0.46 per cent, to end at 24,471.70.
Market Performance Overview
From the Sensex pack, UltraTech Cement, Axis Bank, InterGlobe Aviation, Bharti Airtel, Bajaj Finance and Power Grid were among the major laggards.
Eternal, Infosys, Titan, HCL Tech, and Tata Consultancy Services were the gainers.
Brent crude, the global oil benchmark, jumped 2.18 per cent to USD 89.63 per barrel.
"Indian equity benchmarks ended lower on Tuesday, with both Sensex and Nifty declining around 0.5 per cent and the Nifty 50 slipping below the 24,500-mark, as a rebound in crude oil prices and volatility associated with the weekly F&O expiry weighed on investor sentiment," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.
The dominant headwind for the session remained the renewed surge in global oil prices, he added.
Global Market Trends and Investor Concerns
In Asian markets, South Korea's KOSPI ended higher, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled lower.
Equity markets in Japan were closed due to a holiday.
"A sharp rebound in crude prices shifted market attention back to inflation risks, tempering investor enthusiasm despite a supportive earnings backdrop.
"Concerns over the disruptions in the Strait of Hormuz and the US-Iran negotiations kept sentiment guarded, particularly ahead of key inflation prints in India and the US," Vinod Nair, Head of Research, Geojit Investments Ltd, said.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,974.76 crore on Monday, according to exchange data.
