Indian Markets Fall as Oil Rally, Geopolitical Uncertainty End Five-Day Winning Streak
MUMBAI, India — Indian benchmark indices declined Thursday, snapping a five-day rally as rising oil prices and uncertainty surrounding a U.S.-Iran ceasefire weighed on investor sentiment.
The Nifty 50 fell 0.93 percent, dropping 222.25 points to close at 23,775.10, while the Sensex slipped 1.20 percent, or 931.25 points, to end at 76,631.65.
Analysts said intraday charts showed range-bound movement with a slight negative bias, marked by lower highs that संकेत sustained selling pressure throughout the session.
“A decisive and sustained move above 24,000 is required to improve sentiment and confirm strength, while failure to hold above 23,600 could expose the index to further downside pressure,” an analyst said.
Selling was concentrated in key frontline stocks, with Jio Financial Services, InterGlobe Aviation, and Larsen & Toubro among the top losers on the Nifty.
Despite the decline in benchmark indices, broader markets showed some resilience. The Nifty MidCap and Nifty SmallCap indices both ended higher, gaining 0.25 percent and 0.20 percent, respectively.
Sectorally, banking stocks dragged the market lower, with the Nifty Private Bank and Nifty Bank indices underperforming.
Metal stocks, however, offered support, with the Nifty Metal index emerging as the top sectoral gainer.
Investor sentiment remained cautious amid rising geopolitical tensions. Iran’s Parliament Speaker Mohammad Bagher Ghalibaf voiced deep distrust of the United States, citing alleged violations of agreements, ongoing Israeli attacks on Lebanon, and reported drone activity in Iranian airspace.
Market participants said concerns over the stability of the ceasefire, combined with higher oil prices, increased volatility and triggered profit booking following the recent rally.
The Indian rupee also weakened, ending its five-day gaining streak and declining alongside other Asian currencies.
“Spot USDINR is expected to trade within a range of 92.50 to 93.40, as traders balance global energy risks and domestic capital outflows,” a market expert said. (Source: IANS)
