Sensex Falls 364 Points, Nifty Below 23,900 as Oil Nears $100 Mark

Indian equity markets ended lower on Thursday as rising crude oil prices and fresh geopolitical tensions in West Asia weighed on investor sentiment, dragging both benchmark indices into the red.

The BSE Sensex declined 363.66 points, or 0.47 per cent, to close at 76,391.39, while the NSE Nifty50 fell 126.65 points, or 0.53 per cent, to settle at 23,869.60.

He added that recent macroeconomic indicators suggest that prolonged geopolitical tensions are increasingly impacting the domestic economy, reflected in rising wholesale price inflation (WPI) and moderation in business activity.

Elevated energy prices have also strengthened expectations of a higher-for-longer global interest rate environment, dampening investors' appetite for emerging markets.

Why did Indian stock markets see broad-based selling despite auto stocks outperforming?

Selling pressure was broad-based across sectors, although auto stocks outperformed following strong quarterly earnings, highlighting investors' preference for companies with resilient earnings growth and better earnings visibility.

Among sectoral indices on the NSE, Nifty Auto gained 0.50 per cent and Nifty Media rose 0.93 per cent, while most other sectors closed lower. Nifty PSU Bank declined by more than 1 per cent, Nifty Metal lost 0.97 per cent, Nifty Pharma fell 0.43 per cent, Nifty FMCG dropped 0.63 per cent, and Nifty Consumer Durables slipped 0.56 per cent.

Among individual stocks, SBI Life, Bajaj Auto, Mahindra & Mahindra, and TCS were among the top gainers, while Adani Enterprises, Nestle India, Shriram Finance, and Adani Ports figured among the major losers.

Meanwhile, Brent crude prices surged by more than 4 per cent to USD 98.10 per barrel at the time of reporting as fresh tensions in West Asia fuelled concerns over global oil supplies.

The Indian rupee was trading at Rs 96.54 per US dollar on Thursday.

Dilip Parmar - Senior Research Analyst, HDFC Securities said, "The Indian rupee pulled off a sharp U-turn, erasing its early morning gains as surging crude oil prices and global risk aversion crushed the local currency's momentum.”

“Deepening geopolitical anxieties, relentless foreign capital flight from domestic equities, and high dollar demand from local importers have created a structural pressure on the rupee. Looking at the charts, the spot USDINR pair is flexing its muscles on a powerful bullish trajectory, holding firm above its newly elevated support floor at 96.10 as buyers lock their sights on a march toward the 97,” he added.

In other Asian markets, Japan's Nikkei 225 gained 0.38 per cent, Hong Kong's Hang Seng rose 1.16 per cent, Taiwan's weighted index advanced 0.06 per cent, while South Korea's KOSPI surged 4.22 per cent.

(With inputs from ANI)