Mumbai: Indian equity markets remained under heavy pressure on Tuesday, with benchmark indices falling sharply for the fourth consecutive session. The BSE Sensex dropped over 2,185 points in the last five trading sessions to 75,124, while the NSE Nifty 50 declined 607 points to 23,565, according to the latest market data.
Investor wealth also took a major hit during this period. The total market capitalisation of BSE-listed companies fell by nearly Rs 11 lakh crore, reflecting growing nervousness among investors.
PM Modi’s Austerity Appeal Hits Consumption Stocks
Market sentiment weakened after Prime Minister Narendra Modi urged citizens to reduce non-essential spending and use fuel and other resources carefully. His comments impacted sectors linked to consumer spending.
Stocks related to jewellery, travel, hotels and luxury consumption saw strong selling pressure as investors feared lower demand in the coming months.
US-Iran Tensions Continue To Worry Investors
Global uncertainty also remained a major concern for markets. Investors are worried that tensions between the US and Iran could escalate again despite ongoing diplomatic efforts.
Uncertainty surrounding the conflict has kept crude oil prices elevated and increased fears of inflation across global economies. Traders remain cautious because any disruption in oil supply could hurt India’s economy badly.
High Crude Oil Prices Add Pressure
Brent crude oil prices staying above the USD 100 per barrel mark for a long period has become a major concern for Dalal Street.
India imports a large portion of its crude oil needs. Higher oil prices increase import costs, push inflation upward and weaken the country’s fiscal position. This also affects corporate profitability and overall economic growth.
Weak Rupee And FPI Selling Hurt Sentiment
The Indian rupee weakened further and touched a record low against the US dollar amid rising crude prices and foreign fund outflows.
Foreign Portfolio Investors (FPIs) have continued selling Indian equities aggressively. Continuous foreign selling has added pressure on benchmark indices and reduced investor confidence.
Rising US bond yields and a stronger dollar are also pulling money away from emerging markets like India, keeping domestic equities under pressure.
