The Sensex and Nifty fell for a third straight day on Tuesday as an oil price shock rattled Indian markets.
The Sensex closed 373.93 points, or 0.49%, lower at 76,570.35, while the Nifty50 ended down 141.35 points, or 0.59%, at 23,914.45.
The declines followed overnight strikes between the US and Iran, which stoked fears of supply disruptions from the Strait of Hormuz and pushed Brent crude up 0.76% to $95.37 a barrel.
Nifty Auto led sectoral losses with a 2% fall, alongside weakness in IT and Media, while Oil and Gas, PSU Bank and Realty stocks held firm.
Eicher Motors, Wipro and Bajaj Auto were among the biggest Nifty50 losers, as rising bond yields added to the market’s woes.
Markets will be closely watching for further developments in the Middle East, given the direct link between regional tensions and global crude oil supply concerns.
The US and Iran exchanged strikes overnight, intensifying fears of further supply disruptions from the Strait of Hormuz, a key global oil shipping route.
Brent crude rose 0.76% to $95.37 per barrel during the session, adding to inflation concerns among investors.
Nifty Auto was the worst-hit sectoral index, declining 2%, with Nifty IT and Nifty Media also underperforming during the session.
In contrast, Nifty Oil and Gas, PSU Bank and Realty indices outperformed, providing some counterbalance to the broader market decline.
Eicher Motors, Wipro and Bajaj Auto were among the top losers on the Nifty50 index during the session.
Broader markets also came under pressure, with the Nifty MidCap index ending 0.53% lower and the Nifty SmallCap index down 0.37%.
This marked the third straight session of losses for the benchmark indices, as rising bond yields further dented investor risk appetite.
Rising bond yields typically make fixed-income investments more attractive relative to equities, prompting some investors to shift allocations away from stocks.
Photo of the Bombay Stock Exchange building, Wikimedia Commons, CC BY 2.0
