Indian equity markets saw a sharp decline, with Sensex falling over 770 points and Nifty dropping below 23,200. The sell-off was attributed to rising crude oil prices above $107, a weakening rupee, and broad-based selling pressure.
Indian equity markets ended sharply lower on Tuesday with the Sensex falling 777.94 points, or 1.04 per cent, to 74,003.82 and the Nifty declining 279.50 points, or 1.19 per cent, to 23,118.60, as rising crude oil prices and broader selling pressure weighed on sentiment.
Market analyst Vipin Dixena said the decline was more than just profit booking, with crude oil remaining above USD 107 a barrel and the rupee weakening towards Rs 96 against the dollar adding to concerns over inflation, the fiscal balance and monetary policy. “Today’s weakness is more than just profit booking. Crude oil remaining above $107 a barrel is becoming a serious macro headwind for India,” Dixena said, adding that the broader market remained under pressure, indicating that risk aversion was not limited to a few heavyweight stocks.
Market Analysts’ Perspectives
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in, said the session reflected profit booking after the recent run-up, but the broader market structure remained intact. “This pullback reads more like a pause than a reversal, so long as support levels aren’t breached,” Arora said, adding that the medium-term trend continued to point higher while investors remained focused on global and domestic cues.
Market Performance Breakdown
The Nifty opened at 23,576.15 and touched a high of 23,592.85 before ending at its day’s low of 23,118.60. The Sensex also remained under pressure through most of the session.
Sectoral Indices
Among sectoral indices, Nifty Realty was the biggest loser, falling 4.04 per cent. Nifty Metal declined 2.54 per cent, Consumer Durables fell 2.41 per cent, PSU Bank dropped 2.29 per cent and Auto declined 2.01 per cent. Information Technology was the only major sectoral gainer, with Nifty IT rising 2.19 per cent. FMCG fell 0.50 per cent, Pharma 1.30 per cent and Oil & Gas 1.29 per cent.
Top Movers
HCL Technologies led Nifty gainers with a 3.95 per cent rise, followed by Infosys at 3.79 per cent, TCS at 2.28 per cent, Tech Mahindra at 2.26 per cent and Wipro at 1.55 per cent. Bharat Electronics was the biggest loser, falling 5.30 per cent, followed by Shriram Finance at 4.74 per cent, Adani Enterprises at 4.29 per cent, IndiGo at 3.96 per cent and Grasim Industries at 3.38 per cent.
Global Cues and Macro Factors
At the time of reporting, Brent crude was up 1.86 per cent at USD 107.65 a barrel, while crude oil rose 2.32 per cent to USD 103.74.
Mr Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd., President of India Bullion and Jewellers Association Ltd. and Chairman at Jain International Trade Organisation, said markets were focused on the upcoming Federal Reserve decision. “Hot August PPI and CPI data pushed rate-hike odds for the meeting to roughly 90%,” Kothari said, adding that geopolitical risks remained elevated, with Houthi attacks and Strait of Hormuz tensions keeping Brent near USD 100.
Asian Markets
In Asian markets, Japan’s Nikkei 225 rose 0.22 per cent to 63,630, while Singapore’s Straits Times fell 1.39 per cent to 5,638.64. Hong Kong’s Hang Seng declined 1.25 per cent to 24,609, Taiwan Weighted fell 0.77 per cent to 45,511.49 and South Korea’s KOSPI dropped 0.86 per cent to 6,627.26. Shanghai Composite declined 0.54 per cent to 3,864.28.
Technical Outlook
Arora said the Nifty’s immediate support was around 23,050-23,000, while a stronger support zone was near 22,850. He said a sustained move above 23,200-23,300 could revive bullish momentum. (ANI)
(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)