Sensex, Nifty Fall for Second Straight Session as Oil Prices Pressure Markets
Mumbai — Indian stocks closed lower for a second consecutive session Tuesday as elevated crude oil prices and volatility in global bond yields kept investors cautious.
The Sensex fell 242.65 points, or 0.33%, to 72,529.07, while the Nifty declined 64.05 points, or 0.28%, to end at 22,716.20.
Selling pressure was visible across several large-cap stocks, with Titan Company emerging as the biggest loser on the Nifty. Information technology shares also remained weak, with Wipro and HCLTech among the major drags on the benchmark.
The broader market also came under pressure as investors reduced exposure to mid- and small-cap stocks. The Nifty MidCap index fell 0.99%, while the Nifty SmallCap index dropped 0.81%.
Consumer durables, chemicals, real estate and information technology were among the weakest sectors during the session. The declines reflected continued concerns over global growth and the potential impact of higher crude oil prices on input costs.
The Nifty Consumer Durables, Nifty Chemical, Nifty Realty and Nifty IT indices were among the worst-performing sectoral gauges.
Pharmaceutical stocks, however, provided some support, with the Nifty Pharma index outperforming much of the broader market.
Analysts said investors remained cautious as rising energy prices and fluctuating global bond yields continued to weigh on sentiment.
“While geopolitical tensions will continue to shape near-term sentiment, market focus is gradually shifting towards Q2 earnings, with expectations already tempered versus Q1,” market watchers said.
Analysts added that any significant easing of tensions between the United States and Iran could improve risk appetite and potentially trigger a market rebound.
“A meaningful de-escalation of the U.S.-Iran conflict could trigger a sharp relief rally driven by improved risk sentiment. Until then, investors are likely to remain selective, favoring fundamentals and earnings visibility over broad-based market exposure,” analysts said.
From a technical perspective, analysts said the 22,750-22,800 range remains an immediate resistance area for the Nifty, while 22,550-22,600 is viewed as an important support zone.
A sustained break below 22,500 could increase selling pressure and push the index toward the 22,300-22,000 range, they said.
Meanwhile, the rupee traded largely unchanged near 95.97 against the U.S. dollar, gaining about 0.10% as crude oil prices eased slightly from recent highs. Analysts said the currency could trade in a range of 95.65 to 96.15. (Source: IANS)
