Indian benchmark equity indices, Sensex and Nifty, experienced significant declines, with the Nifty extending its losing streak to a seventh day, as elevated crude oil prices and geopolitical tensions between the US and Iran unnerved investors.
Key Points
- The Nifty 50-share index declined for the seventh consecutive day, tumbling over 2 per cent in the last seven sessions.
- The BSE Sensex registered its fourth day of decline, losing 1,170.28 points in four days.
- Elevated crude oil prices, driven by renewed concerns over energy supply disruptions after the US-Iran ceasefire expired, were a primary factor for the market downturn.
- Global oil benchmark Brent crude jumped 1.04 per cent to USD 91.97 per barrel.
- Investor sentiment was also cautious ahead of the release of the US FOMC minutes, with concerns about the Federal Reserve's ongoing battle against inflation.
Benchmark equity indices Sensex and Nifty closed lower on Wednesday as elevated crude oil prices amid a lack of a diplomatic resolution following the end of the US-Iran ceasefire dented investor sentiment.
The expiry of the temporary 60-day US-Iran ceasefire without any meaningful diplomatic breakthrough has renewed concerns over a prolonged disruption to energy supplies, driving crude oil prices higher, an expert said.
Market Performance Overview
The 30-share BSE Sensex was down 325.78 points, or 0.42 per cent, to settle at 76,909.68, registering its fourth day of decline.
During the day, it dropped 412.57 points, or 0.53 per cent, to 76,822.89.
In the last four days, the benchmark has lost 1,170.28 points, or 1.49 per cent.
Extending its losses to the seventh day, the 50-share NSE Nifty declined 76.60 points, or 0.32 per cent, to end at 24,078.30.
It has tumbled 505.5 points, or 2 per cent, in the last seven sessions.
Top Laggards and Gainers
From the Sensex pack, Power Grid, Bajaj Finance, Larsen & Toubro, ITC, Hindustan Unilever and Reliance Industries were among the major laggards.
HCL Tech, Eternal, Kotak Mahindra Bank and Sun Pharma were among the winners.
Brent crude, the global oil benchmark, jumped 1.04 per cent to $91.97 per barrel.
Expert Insights and Global Cues
"Markets turned cautious ahead of the release of the US FOMC minutes, as investors remained concerned that the Federal Reserve's battle against inflation may continue.
"The lack of a diplomatic resolution following the end of the US-Iran ceasefire kept crude oil prices and bond yields elevated, strengthening risk-off sentiment," said Vinod Nair, Head of Research, Geojit Investments Ltd.
In Asian markets, South Korea's Kospi tanked 5.80 per cent. Japan's Nikkei 225 and Shanghai's SSE Composite index also ended significantly lower, while Hong Kong's Hang Seng index settled marginally higher.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,651.53 crore on Tuesday, according to exchange data.
