Sensex Sinks 493 Points, Nifty Ends Below 24,200 As Crude Tops $91

Mumbai: Indian equity markets extended their decline on Tuesday as a surge in crude oil prices, rising US bond yields and renewed uncertainty in West Asia triggered broad investor caution.

The BSE Sensex dropped 492.70 points, or 0.63 percent, to settle at 77,235.46, recording its third consecutive loss. The index touched an intraday low of 77,234.36 after tumbling 493.8 points during late trading.

The NSE Nifty declined 132.75 points, or 0.55 percent, to close at 24,154.90. This marked the benchmark’s sixth straight session in negative territory.

Oil Fuels Worries

Brent crude, the global oil benchmark, rose 0.17 percent to USD 91.02 a barrel. Expensive oil is a concern for India because the country imports most of its energy needs. A sustained rise can increase inflation, weaken the rupee and raise costs for companies.

Market experts said crude oil remained the biggest pressure point. Investor worries grew after the temporary US-Iran ceasefire expired, reducing hopes of a quick diplomatic settlement and raising fears of renewed tension in the Middle East.

IT Shares Slide

Asian Paints, Infosys, HCL Technologies, Bharti Airtel, Tata Consultancy Services and Hindustan Unilever were among the biggest Sensex losers.

Axis Bank, Power Grid, Mahindra & Mahindra and Bajaj Finance ended higher, limiting the overall fall.

IT shares faced selling as rising US bond yields increased fears that interest rates could stay high for longer. Higher borrowing costs may slow global technology spending and affect demand for Indian software services.

Global Cues Weak

South Korea’s Kospi and Japan’s Nikkei 225 closed lower. China’s Shanghai Composite and Hong Kong’s Hang Seng ended slightly higher, while European markets traded on a mixed note. US stocks had closed in negative territory on Monday.

Foreign institutional investors sold Indian shares worth ₹2,535.10 crore on Monday, exchange data showed, adding to the weak mood.

Previous Session

On Monday, the Sensex had declined 281.09 points, or 0.36 percent, to 77,728.16. The Nifty had fallen 78.35 points, or 0.32 percent, to 24,287.65, extending its losing run to five sessions before Tuesday’s further market decline.