Sensex, Nifty Close Sharply Lower as Oil Price Volatility Weighs on Indian Markets
MUMBAI — Indian benchmark equity indices ended sharply lower Thursday as volatility in global oil prices weighed on investor sentiment and triggered broad selling across multiple sectors.
The Nifty 50 index declined 227.70 points, or 0.95 percent, to close at 23,639.15. The BSE Sensex dropped 829.29 points, or 1.08 percent, finishing the session at 76,034.42.
Analysts said uncertainty in global energy markets, particularly related to developments in West Asia, contributed to the market’s decline.
Technical analysts noted that key support levels for the Nifty remain at 23,500 and 23,000, supported by strong put open interest that could provide near-term stability.
“On the upside, 23,700 stands as the immediate resistance followed by 23,800, while 24,000 continues to remain a strong supply zone for the index,” an analyst said.
Among Nifty 50 stocks, automobile companies led the losses during the session, with Mahindra & Mahindra, Eicher Motors and Maruti Suzuki India emerging as the biggest decliners.
Market sentiment was also influenced by geopolitical developments in West Asia and concerns about the security of global energy supply routes.
India’s External Affairs Minister S. Jaishankar recently held discussions with his Iranian counterpart on maritime safety and India’s energy security. External Affairs Ministry spokesperson Randhir Jaiswal said the talks focused on ensuring safe shipping routes in the region.
Iran has reportedly assured that India-flagged vessels will be allowed to pass safely through the Strait of Hormuz, a critical shipping route for global oil trade.
Broader markets also ended in negative territory, tracking the benchmark indices. The Nifty Midcap 100 index fell 0.37 percent, while the Nifty Smallcap 100 index declined 0.69 percent.
Sectoral performance was mixed. The Nifty Auto index was the worst-performing sector during the session, amid concerns over potential restrictions on gas supplies and broader shortages that could affect the automotive industry. The Nifty FMCG and Nifty Realty indices also recorded losses.
In contrast, the Nifty Oil & Gas index emerged as the top-performing sector, supported by rising global crude oil prices.
Analysts said ongoing volatility in oil markets and uncertainty around energy supply have continued to pressure investor confidence, contributing to the day’s broad-based decline in equities.
Meanwhile, the Indian rupee recovered slightly after briefly touching a historic low earlier in the session. The currency regained some ground with support from the central bank and a pullback in oil prices, although analysts said the broader trend remains weak.
“The spot USDINR has resistance near 92.50, with downside protection hovering at 91.60,” an expert said. (Source: IANS)
