Sensex Falls 460 Points, Nifty Drops Below 22,700 as Rising Oil Prices Extend Market Losing Streak

MUMBAI — Indian stock markets closed lower for the third consecutive session Thursday as rising crude oil prices fueled inflation concerns and weakened investor sentiment, with selling pressure across technology, consumer goods and media stocks.

The BSE Sensex dropped 460.30 points, or 0.62%, to close at 73,249.39, while the NSE Nifty 50 declined 123.70 points, or 0.54%, to settle at 22,687.65.

The decline came as crude oil prices remained above $110 per barrel, raising concerns about higher import costs, inflationary pressures and the potential impact on India’s economic outlook.

Market analysts said the Nifty remained under pressure despite managing to finish above its 200-week moving average, a closely watched technical indicator used to assess longer-term market trends.

The index encountered substantial selling near its 20-day moving average and failed to maintain momentum above that resistance level.

“The index faced strong selling pressure near its 20-DMA and failed to sustain above this crucial resistance zone. Long positions accumulated during the mean reversion rally should be reviewed if the index closes below 22,600 and its 200-WMA,” analysts said.

Market observers identified 22,600 as an important support level, while 22,800 and 23,000 were seen as immediate resistance levels.

“On the upside, immediate resistance is placed at 22,800 (20-DMA zone) and 23,000, while 22,600 remains a crucial support. A cautious, level-based trading approach is advisable,” analysts noted.

Selling was widespread across several major sectors, with information technology, fast-moving consumer goods and media stocks among the weakest performers.

Pharmaceutical shares provided a notable exception, with the Nifty Pharma index ending in positive territory despite losses across the broader market.

Among individual Nifty stocks, Nestlé India, Eternal and HDFC Life Insurance were among the session’s biggest losers.

The broader market also experienced declines, indicating that weakness was not confined to large-cap companies.

The Nifty Midcap 100 index fell 0.87%, while the Nifty Smallcap 100 declined 1.17%, reflecting stronger selling pressure among smaller companies.

Analysts attributed the cautious market sentiment primarily to elevated crude oil prices and ongoing geopolitical uncertainty.

India relies heavily on imported crude oil, making sustained price increases a concern for inflation, corporate profitability and the country’s external finances.

Higher energy costs can also influence expectations surrounding future interest rate decisions, particularly if inflationary pressures persist.

The Indian rupee weakened alongside equities, falling approximately 30 paise to 94.81 against the U.S. dollar.

Currency market participants pointed to expensive crude imports and negative sentiment in domestic equity markets as major factors behind the rupee’s decline.

Analysts expect geopolitical developments and oil price movements to remain the primary influences on the currency in the near term.

“Going ahead, geopolitical developments and crude oil movements will remain key drivers, with the rupee range seen between 94.45–95.25,” market analysts said.

Investors are expected to closely monitor global energy prices, geopolitical tensions and movements in the rupee as Indian equities attempt to stabilize following three consecutive sessions of losses. (Source: IANS)