Indian equities declined further on Tuesday amid a sharp jump in Brent crude prices, fuelling concerns over inflation and currency depreciation, with market indicators breaking key support levels amid global geopolitical tensions.
Indian shares fell further on Tuesday as a fresh jump in Brent crude unsettled investors and dragged the Nifty 50 below the lows of the previous two sessions. By 12.45 pm, the Nifty was down 133.30 points, or 0.54%, at 24,450.50, while the Sensex had dropped 413.52 points, or 0.53%, to 78,128.92. Markets had already been under pressure from the oil shock earlier in the month, and the latest move added to worries about inflation, the currency and foreign fund flows.
Sudeep Shah, head of technical and derivatives research at SBI Securities, told the Hindu BusinessLine that the index had broken below the lows of the previous two trading days after Brent spiked sharply. He said 24,360 to 24,340 was a key support band for the Nifty, with resistance near 24,530 to 24,550. A fall below 24,340 could open the way to 24,220 to 24,200, while a move above 24,550 could carry the index towards 24,700. For the Sensex, Shah placed support at 77,700 and resistance at 78,600.
The broader market showed clear strain. Of 4,334 shares traded on the BSE, 1,933 advanced and 2,168 declined, with 233 unchanged. Market breadth was weak, with the Nifty’s advance-decline ratio standing at 13:37. A total of 163 stocks touched 52-week highs, while 70 hit 52-week lows. There were also 182 stocks locked in upper circuit limits and 162 in lower circuits.
Sector performance reflected the same split. Information technology was the strongest pocket of the market, while private banks were the weakest. Dr Reddy’s Laboratories led the Nifty gainers, rising 2.61% to ₹1,189.10, followed by Titan, Eicher Motors, Infosys and TCS. On the losing side, Max Healthcare fell 3.07% to ₹1,036.20, while Tata Consumer Products, Apollo Hospitals, UltraTech Cement and SBI Life Insurance also declined.
Ponmudi R, chief executive of Enrich Money, said the sell-off was being driven largely by crude, with WTI near $82 a barrel after a run of more than 6% in recent sessions and Brent testing $87.9. Speaking to the Hindu BusinessLine, he said investors were weighing the combined effect of firmer energy costs, a weaker rupee and geopolitical uncertainty tied to the Strait of Hormuz dispute.
The currency market added to those concerns. The rupee weakened to around ₹95.4 against the dollar, with traders watching resistance at ₹95.4 to ₹95.5 and support around ₹95.3 to ₹95.2. In commodities, gold and silver extended their gains, with COMEX gold moving above $4,450 and domestic gold trading near ₹1,55,000. Silver also firmed, while MCX crude oil climbed further to ₹7,800 after recovering from long-term support near ₹7,100.
The pattern echoed previous oil-led declines in Indian equities this year. In July, the Sensex and Nifty both fell as crude rose, the rupee weakened and investors trimmed risk. Earlier, in April and March, sharp increases in oil prices and Middle East tensions had also triggered broad selling, particularly in banks and financial stocks. Tuesday’s move suggested that the market remains highly sensitive to any further escalation in U.S.-Iran tensions, while earnings from companies including Manappuram Finance, PI Industries, MRF, Zydus Lifesciences, Siemens India and Bata India were also due to influence stock-specific trading later in the 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.
