Indian shares declined for a sixth consecutive session amid rising oil prices, global uncertainties, and waning hopes of diplomatic progress in West Asia, leading to continued investor caution.
Indian shares extended their slide on Tuesday as firmer oil prices, weaker global cues and fading hopes of calm in West Asia kept investors on edge. The Sensex fell 492.70 points, or 0.63%, to 77,235.46, while the Nifty dropped 132.75 points, or 0.55%, to 24,154.90, marking a sixth straight session of losses for the broader market.
Brent crude rose 0.17% to USD 91.02 a barrel, adding to concern that higher energy costs could feed inflation and complicate the outlook for interest rates. Vinod Nair, head of research at Geojit Investments, told the market that crude remained the main drag on sentiment, while higher US bond yields and weak international cues prolonged the risk-off tone in Indian equities. Nair also said the end of the temporary US-Iran ceasefire had sharpened fears of renewed inflation pressures.
Technology shares were among the biggest drags, with Asian Paints, Infosys, HCL Technologies, Bharti Airtel, Tata Consultancy Services and Hindustan Unilever all under pressure. Axis Bank, Power Grid, Mahindra & Mahindra and Bajaj Finance were among the few major gainers. Ponmudi R, chief executive of Enrich Money, said Indian markets were tracking global weakness, including a sharp sell-off in US Treasuries, and that waning hopes of a diplomatic breakthrough in the Middle East had further reduced appetite for risk.
The weakness was not confined to India. South Korea’s Kospi and Japan’s Nikkei 225 finished lower, while Shanghai’s SSE Composite and Hong Kong’s Hang Seng ended slightly higher. European markets were mixed and US markets closed lower on Monday. Foreign institutional investors sold shares worth Rs 2,535.10 crore on Monday, according to exchange data, after the Sensex had already fallen 281.09 points and the Nifty 78.35 points the previous day.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
