Sensex, Nifty Fall for Third Straight Session as Oil Prices, Bond Yields Weigh
Mumbai — Indian stock markets extended losses for a third consecutive session Wednesday as rising crude oil prices fueled inflation concerns and higher bond yields weakened investor appetite for equities.
The Sensex fell 373.93 points, or 0.49%, to close at 76,570.35, while the Nifty declined 141.35 points, or 0.59%, to settle at 23,914.45.
Market analysts said the near-term outlook for the Nifty remains weak, with bearish sentiment likely to persist as long as the index stays below the 24,000 level.
“On the lower end, the correction may extend towards 23,700–23,730,” an analyst said.
Investor sentiment remained cautious amid concerns that higher crude oil prices could add to inflationary pressures and increase costs for businesses. Rising bond yields also weighed on equities by making fixed-income investments relatively more attractive.
Eicher Motors, Wipro and Bajaj Auto were among the biggest losers on the Nifty, contributing to the benchmark’s decline.
The broader market also ended lower. The Nifty MidCap index fell 0.53%, while the Nifty SmallCap index declined 0.33%.
Most sectoral indices closed in negative territory. The Nifty Auto index was the worst performer, falling more than 2%, while the Nifty IT and Nifty Media indices also lagged.
The Nifty Oil and Gas index was among the few sectors to outperform the broader market.
Analysts said investors are likely to remain cautious as they assess the impact of elevated energy prices and higher borrowing costs on inflation, corporate earnings and economic growth. (Source: IANS)
