Indian shares declined for a sixth consecutive session on Tuesday, weighed down by rising crude oil prices, geopolitical tensions in West Asia, and continued foreign selling, with market sentiment remaining cautious despite some domestic supportive measures.
Indian shares extended their decline for a sixth straight session on Tuesday as rising crude prices and fresh worries over West Asia kept buyers away from the market. The Nifty 50 slipped below 24,200 to end at 24,154.90, while the Sensex finished at 77,235.46, underscoring a cautious mood that has now erased much of the recent optimism around domestic equities.
According to The Hindu BusinessLine, the pressure intensified after Brent crude moved above $91 a barrel as a temporary US-Iran ceasefire expired and hopes of a diplomatic breakthrough faded. That shift revived concerns about inflation, India’s import bill and the current account deficit, all of which tend to worsen when energy prices climb. Earlier bouts of similar tension in West Asia have repeatedly shaken Indian markets this year, showing how closely local equities remain tied to oil and geopolitics.
Foreign investors added to the strain by continuing to sell Indian stocks. The Hindu BusinessLine reported net sales of ₹2,535 crore on Monday, the heaviest outflow in three weeks. A firm US 10-year Treasury yield, around 4.73 per cent, also helped keep money parked in dollar assets, while the rupee weakened to about ₹95.68-95.70 against the dollar. Market participants have been watching the currency closely, because a weaker rupee can reinforce imported inflation and further reduce appetite for risk assets.
Sectorally, technology shares led the retreat, with the Nifty IT index falling for a third consecutive session. Realty, PSU banks and FMCG also came under pressure, while healthcare, auto and media managed to post gains. Broader markets held up somewhat better, with the Nifty Smallcap 100 ending broadly unchanged even as the Nifty Midcap 100 declined. That pattern suggests investors are still willing to selectively buy, but only in pockets seen as relatively insulated from external shocks.
Analysts said the near-term picture remains fragile. Siddhartha Khemka of Motilal Oswal told The Hindu BusinessLine that elevated crude prices, geopolitical uncertainty and foreign selling are likely to keep sentiment subdued for now, though domestic growth and policy support still provide a steadier medium-term base. Ajit Mishra of Religare Broking said 24,000 and 23,800 may act as the next support zones, with 24,250 the first level the Nifty needs to reclaim for any durable rebound.
The government also offered a rare positive note, approving 31 new investment proposals worth ₹7,877 crore under the Electronics Component Manufacturing Scheme, taking total approved investments above the scheme’s original target. Even so, the broader market tone remains dominated by oil, overseas flows and the path of the rupee.
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