Sensex, Nifty Fall Nearly 2% as Rising Crude Oil Prices and Foreign Fund Outflows Weigh on Markets
Benchmark Indices End Sharply Lower
The benchmark indices of the Indian stock market, Sensex and Nifty, closed nearly 2% lower on Wednesday as rising crude oil prices and persistent foreign fund outflows pressured investor sentiment.The decline comes after a brief recovery in the previous session, with escalating tensions in the Middle East pushing global oil prices higher and triggering selling across key sectors in the domestic market.
The 30 share BSE Sensex dropped 1,342.27 points, or 1.72%, to settle at 76,863.71. During intraday trading, the index had fallen as much as 1,446.72 points, or 1.84%, touching 76,759.26.
The 50 share NSE Nifty also ended lower, declining 394.75 points, or 1.63%, to close at 23,866.85.
Banking and Financial Stocks Lead Decline
Selling pressure was visible in several heavyweight stocks, particularly in the banking and financial services space.Among the 30 Sensex constituents, Bajaj Finance, Axis Bank, Bajaj Finserv, Mahindra and Mahindra, Maruti, Trent, Bharti Airtel, and Kotak Mahindra Bank were among the biggest laggards during the session.
On the other hand, Sun Pharma and NTPC were the notable gainers in the index.
Crude Oil Surge Adds to Market Pressure
Global crude oil prices surged sharply during the session, adding to concerns about inflation and economic stability.Brent crude, the global oil benchmark, climbed 5.76% to reach $92.86 per barrel, reflecting heightened geopolitical tensions in the Middle East.
Foreign Investors Continue Selling
Foreign investors continued to remain net sellers in the Indian equity market.According to exchange data, Foreign Institutional Investors sold equities worth Rs 4,672.64 crore on Tuesday. In contrast, Domestic Institutional Investors purchased shares worth Rs 6,333.26 crore during the same period.
Global Markets Show Mixed Trend
Asian markets ended the day with mixed performances. Japan’s Nikkei 225 index gained 1.43%, while South Korea’s Kospi advanced 1.40%. The Shanghai SSE Composite index also finished in positive territory. However, Hong Kong’s Hang Seng index ended lower.European markets were trading in the red during the session.
Meanwhile, the US market had closed flat on Tuesday.
Previous Session Performance
In the previous trading session on Tuesday, the domestic benchmarks had posted gains.The Sensex rose by 639.82 points, or 0.82%, to close at 78,205.98, while the Nifty advanced 233.55 points, or 0.97%, to settle at 24,261.60.
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