Indices continue decline amid rising crude prices, global bond yields

Nifty falls for a seventh consecutive session, its longest losing streak since September 2025, as elevated crude oil prices and global bond yields weigh on sentiment

Elevated crude oil prices and rising bond yields pushed the benchmark Nifty to end lower for the seventh consecutive session, marking its longest losing streak since September 2025. The Nifty on Wednesday ended the session at 24,078, down 77 points or 0.3 per cent. The Sensex, meanwhile, settled at 76,910, down 326 points, or 0.4 per cent. Three index heavyweights — HDFC Bank, ITC, and HUL, which together account for roughly 10 per cent of the Nifty 50's total market capitalisation — fell more than 1 per cent each intraday amid weak global sentiment. However, HUL and HDFC Bank pared losses to close lower by less than 1 per cent following buying at lower levels.

 

 

Put option premiums for August-expiry contracts rose nearly 50 per cent for these counters as investors took cues from falling underlying prices through midday. Market participants remained particularly cautious on HDFC Bank, which is down 27 per cent year-to-date (YTD) compared to a 4 per cent decline in the Nifty Bank index. HDFC Bank put options at the ₹720 strike surged roughly 50 per cent, opening at ₹6, touching a high of ₹8.8, and settling at ₹5. Call options for the same strike opened at ₹11 and closed at ₹7.05. Over a five-year horizon, the stock has slipped 4 per cent, lagging behind the Nifty 50's 45 per cent gain and the Nifty Bank's 61 per cent advance.

 

HUL opened at ₹2,035 and touched an intraday low of ₹2,008 (down 1.3 per cent) before settling at ₹2,021, down 0.7 per cent. While foreign portfolio investor (FPI) ownership in HUL slipped from 10.1 per cent to 9.5 per cent during the first quarter of financial year 2026-27 (Q1FY27), domestic mutual fund holdings rose to 7.15 per cent.

 

“So, the HUL story is really about quality and earnings visibility in a market where investors are becoming much more selective," noted Saikat Kumar of Red Lions Capital.

 

The spike in energy costs and global yields continues to drive risk-off sentiment. Brent crude spot hovered near $89.98 per barrel, up roughly 10 per cent over the last eight sessions. Geopolitical tensions remained elevated after US President Donald Trump stated on Tuesday that no diplomatic talks were underway with Iran, asserting that the Strait of Hormuz remained open, contradicting Tehran's claims that the key maritime choke point — handling a fifth of global oil transit — was closed. Higher crude oil prices pose a headwind for India, which imports over 85 per cent of its crude requirements.

 

"A lack of a diplomatic resolution following the end of the US-Iran ceasefire kept crude oil prices and bond yields elevated, strengthening risk-off sentiment. As the Q1FY27 earnings season draws to a close, corporate results have generally exceeded expectations, reinforcing confidence in earnings resilience. However, with temporary market tailwinds fading, the next phase of market performance will depend largely on the stability of crude oil supply chains," said Vinod Nair, head of research at Geojit Financial Services.

 

Market breadth was negative, with 2,572 stocks declining against 1,728 advances. FPIs were net buyers of ₹408 crore, while domestic institutional investors (DIIs) supported the market with net purchases of ₹3,974 crore.