Indian indices decline for the second consecutive day as elevated crude oil prices, foreign outflows, and geopolitical tensions in West Asia continue to dampen investor sentiment, with bears dominating trading sessions amid global cues.
Indian equities fell for a second straight session on Tuesday, with the Sensex and Nifty both closing lower as investors continued to worry about elevated crude oil prices, persistent foreign selling and uncertainty over the geopolitical backdrop in West Asia. The 30-share Sensex ended 242.65 points, or 0.33%, lower at 72,529.07, while the 50-share Nifty slipped 64.05 points, or 0.28%, to 22,716.20. During the session, the Sensex sank as much as 707.72 points to 72,064 before recovering part of the loss.
Trading was heavy throughout the day as analysts pointed to a mix of global and domestic pressures. Reuters reported that foreign institutional investors sold shares worth Rs 5,353.22 crore on Monday, adding to the pressure on sentiment, while Brent crude edged down only slightly to USD 105.1 a barrel after recent strength. Vinod Nair, head of research at Geojit Investments, said volatile oil prices, US Treasury yields close to two-decade highs and continued foreign outflows were weighing on the rupee and keeping risk appetite subdued. Ajit Mishra, senior vice-president for research at Religare Broking, said the monthly derivatives expiry also intensified selling pressure.
Among individual stocks, Titan, HCL Tech, Tata Consultancy Services, UltraTech Cement, Hindustan Unilever and Tech Mahindra were among the biggest laggards. Adani Ports, Sun Pharma, Tata Steel and Kotak Mahindra Bank gained ground, helping limit the market’s decline. Broader market tone was mixed, with the BSE MidCap Select index falling 0.99% even as the SmallCap Select index edged 0.25% higher. Sector-wise, consumer durables, focused IT, insurance, realty, IT, hospitals and housing finance were all weaker, while healthcare, industrials, telecommunications, metals and services finished in positive territory.
The weakness in India echoed a softer global tone. Asian shares were mostly lower, with South Korea’s Kospi, Japan’s Nikkei 225 and Hong Kong’s Hang Seng all ending in the red, although Shanghai’s SSE Composite closed higher. European markets were positive in afternoon trade, while US stocks had finished lower on Monday. Tuesday’s move followed a sharp sell-off on Monday, when the Sensex dropped 1,124.02 points and the Nifty fell 360.25 points, leaving the benchmarks at their weakest closing levels in six months.
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