Indian Markets Close Lower as Oil Price Surge Weighs on Sentiment
MUMBAI — India’s benchmark stock indices ended lower Tuesday, pressured by a sharp rise in global crude oil prices amid renewed geopolitical tensions in West Asia.
The Sensex fell 416.72 points, or 0.54 percent, to close at 76,886.91, while the Nifty declined 97 points, or 0.40 percent, to settle at 23,995.70.
Among Sensex stocks, Adani Ports, ITC, Bharti Airtel, and Tech Mahindra were among the top gainers. HCL Tech, Axis Bank, ICICI Bank, and Infosys were among the laggards.
Broader markets, however, outperformed the benchmarks. The Nifty MidCap index rose 0.28 percent and the Nifty SmallCap index gained 0.42 percent.
Sectorally, banking stocks remained under pressure, with the Nifty PSU Bank and Nifty Bank indices among the worst performers. In contrast, oil and commodity-related stocks advanced, lifting the Nifty Oil & Gas and Nifty Metal indices.
Investor sentiment weakened following reports that U.S. President Donald Trump is dissatisfied with Iran’s recent proposal aimed at easing tensions.
According to reports, Iran has offered to reopen the Strait of Hormuz but has not addressed its nuclear program, adding to uncertainty in global energy markets.
Brent crude prices rose 2.78 percent to $111.24 per barrel as concerns over supply disruptions persisted while the United States evaluates Iran’s proposal.
Analysts said the spike in crude prices weighed on domestic equities, as higher oil costs are seen as inflationary and negative for India’s import-dependent economy.
Meanwhile, the Indian rupee weakened to around 94.54 against the U.S. dollar, down about 0.37 rupee, or 0.38 percent, amid pressure from rising oil prices and continued foreign institutional investor outflows. (Source: IANS)
