Sensex Sheds 539 Points, Nifty Slides 116 Points As Hormuz Tensions Hurt Sentiment

Mumbai: Indian shares ended lower on Thursday as tension around the Strait of Hormuz weakened investor confidence and kept risk appetite subdued.

Benchmark indices retreat

The Sensex dropped 539 points, or 0.70 percent, to close at 76,933. The Nifty declined 116 points, or 0.48 percent, and settled at 24,090.

The Nifty Bank index lost 273 points, or 0.47 percent, finishing at 57,509.

Uncertainty over Middle East negotiations and volatility linked to derivatives expiry kept the market under pressure. However, softer crude oil prices and lower long-term bond yields supported the inflation outlook.

Higher energy costs have largely been included in corporate earnings forecasts, limiting fresh downside concerns.

Broader market stays weak

The broader market moved in step with the headline indices. The Nifty Midcap 100 slipped 0.10 percent, while the NSE Smallcap 100 fell 0.13 percent. The Nifty Next 50 declined 0.21 percent.

Most sectoral indices on the NSE closed in negative territory. Private banks, pharmaceutical companies and consumer durables were the only segments to record marginal gains.

Cement shares were the worst performers, with the sectoral index falling 1.33 percent. The PSU Bank index dropped 0.94 percent, media lost 0.89 percent, and metals declined 0.86 percent.

Technical signals turn weaker

Market experts said the Nifty moved below its rising channel on the daily chart, pointing to stronger selling pressure.

Its fall below the 50-day exponential moving average also confirmed that the near-term trend was losing strength.

Rupee and Fed in focus

The rupee weakened against the US dollar, which recovered towards 95.50 after touching a 10-day low of 95.40 in the previous session.

Foreign institutional investor inflows and steady corporate earnings continue to support domestic equities.

Some mid-cap businesses also remain less exposed to global risks and are benefiting from healthy local demand.

Investors now await the US Federal Reserve chair’s Jackson Hole speech for guidance on inflation, interest rates and future policy.

The remarks may shape worldwide market sentiment and determine foreign capital flows into emerging economies, including India.