Markets fall for third day as crude surge dents investor sentiment

Sensex lost 715 points and the Nifty slipped below 24,000 as rising crude prices, tariff concerns and geopolitical tensions triggered broad-based selling

Benchmark equity indices fell for the third consecutive session on Wednesday as higher crude oil prices triggered broad-based selling in the market.

 

The indices recorded their biggest single-day decline in two weeks, pushing the Nifty 50 below the 24,000 mark. 

 

The BSE Sensex fell 715.06 points, or 0.92 per cent, to close at 76,755.05, while the NSE Nifty 50 dropped 191.45 points, or 0.79 per cent, to end at 23,996.25.

 

Brent crude climbed above $94 a barrel during the day as the US-Iran conflict intensified and attacks by Yemen's Houthi rebels disrupted key shipping routes, raising concerns over global oil supplies. 

 

 

Higher crude prices also kept the rupee under pressure near record lows, adding to concerns over inflation and India’s import bill.

 

“The ongoing US-Iran standoff and Houthi-led disruptions to key global shipping routes heightened concerns over potential oil supply disruptions, driving crude prices higher and weakening the rupee. The riskoff sentiment due to renewed concerns over domestic inflation overshadowed better-than-expected business updates and encouraging first-quarter earnings,” said Vinod Nair, head of research at Geojit Investments.

 

Selling was pronounced in rate-sensitive sectors, with banking, realty and consumer durables leading the decline. ICICI Bank was the biggest drag on the Nifty, while overall market breadth remained weak, with 39 of the index's 50 constituents ending in the red.

 

Pharmaceutical stocks also came under pressure after US President Donald Trump proposed steep tariffs on imported generic medicines after a transition period, reviving concerns over the earnings outlook for Indian drugmakers. The Nifty Pharma index ended 1.3 per cent lower after falling as much as 2.1 per cent during the session.

 

Despite the broader weakness, auto and FMCG shares traded in the green supported by strong June-quarter earnings. Bajaj Auto surged 5.7 per cent to a 52-week high after reporting better-than-expected results, while Nestle India and Tata Consumer Products also ended with gains. On the other hand, InterGlobe Aviation (IndiGo), Jio Financial Services and Dr Reddy's Laboratories were among the top losers.

 

“The Indian stock market saw a broad selloff amid the riskoff sentiment prevailing in global markets. Rising tensions in the Middle East pushed crude oil prices above $94 per barrel, raising concerns over inflation, India's import bill and corporate earnings. Despite the sharp fall, India's economic fundamentals remain strong. However, volatility is likely to persist as investors track crude prices, geopolitical developments, foreign fund flows, first-quarter earnings and signals from global central banks,” said Vikram Kasat, head advisor at PL Capital.