Markets fall for fourth session as higher crude prices, FPI selling weigh

Benchmark indices extended losses as rising crude oil prices and sustained foreign portfolio investor selling offset domestic institutional buying and weighed on sentiment

Benchmark equity indices extended their losses for the fourth consecutive session on Thursday as crude oil prices rose and foreign portfolio investor (FPI) selling remained heavy.

 

The benchmark indices recorded marginal losses, extending their longest losing streak in seven weeks following their biggest single-day decline in two weeks on Wednesday. The Nifty 50 slipped 0.53 per cent, or 126.65 points, to close at 23,870. The BSE Sensex dropped 0.47 per cent, or 364 points, to close at 76,391.38. The total market capitalisation of BSE-listed firms declined by ₹3.3 trillion to ₹476.7 trillion.

 

The Brent crude spot price rose 3.2 per cent to $93.6 per barrel. High oil prices pose a key risk to India, the world's third-largest crude importer and consumer, by threatening to stoke inflation, widen the trade gap, squeeze growth and reduce companies' profit margins.

 

 

All the sectoral indices, barring two, fell, with the Nifty Chemicals and Nifty Realty indices declining 1.9 per cent and 1.8 per cent, respectively, making them the worst hit.

 

More than two-thirds of Sensex stocks declined. Reliance Industries, which fell 1.05 per cent, was the biggest contributor to the Sensex decline, followed by HDFC Bank, which fell 0.7 per cent. Index declines or gains depend on the weightage of constituents and how much they change during a session.

 

IndusInd Bank lost 6 per cent despite a 72 per cent jump in profit in the quarter ended June due to lower provisions, as investors booked profits. The stock had surged 7.2 per cent in the six sessions before the results were announced.

 

"Indian equities are likely to remain under pressure in the near term as elevated crude oil prices remain a key overhang. Continued geopolitical tensions in West Asia, Brent crude oil prices hovering near a six-week high above $98/bbl, weakness in the rupee at around ₹96.6/US$ and persistent foreign institutional investor (FII) selling are expected to keep investor sentiment cautious. With the ongoing Q1FY27 earnings season, stock-specific action is expected to persist," said Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services.

 

Foreign portfolio investors (FPIs) were net sellers of ₹2,999 crore, while domestic institutional investors (DIIs) were net buyers of ₹2,947 crore. Market breadth was weak, with 2,684 stocks declining and 1,556 advancing.

 

"Going forward, the 23,780-23,750 zone is expected to act as an immediate support area for the Nifty. A decisive breakdown below 23,750 could trigger further weakness, opening the door to a decline towards the 23,600 mark. On the upside, the 23,980-24,000 zone remains a crucial resistance hurdle. A sustained move above this range will be essential for the index to regain positive momentum," said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities.