The equity markets extended their decline on Tuesday, with both benchmark indices closing in the red as elevated crude oil prices, rising US bond yields and weak global cues kept investors cautious.
The Nifty 50 index closed at 24,154.90, down 132.75 points or 0.55 per cent, while the BSE Sensex closed at 77,235.46, lower by 492.70 points or 0.63 per cent.
Vinod Nair, Head of Research, Geojit Investments Limited, said crude oil remained the main factor weighing on market sentiment, while higher US bond yields and weak global markets added to the pressure.
“Crude oil remained the primary drag on market sentiment, while rising US bond yields and weak global cues prolonged the risk-off trend in Indian equities,” Nair said.
He said investor anxiety increased as hopes of a resolution in the Middle East weakened following the expiry of the temporary US-Iran ceasefire, raising concerns about renewed inflation.
“Elevated US yields further reduced the attractiveness of emerging markets, and IT stocks led losses amid fears that persistently high interest rates could dampen global technology spending,” he said.
Nair added that while domestic fundamentals remain supportive, sustained high crude prices and rising input costs could put pressure on recent earnings upgrades.
“Although domestic fundamentals continue to be supportive, sustained high crude prices and rising input costs could pressure recent earnings upgrades, prompting investors to remain cautious in the near term,” he said.
On the NSE, most sectoral indices closed lower. Nifty Auto gained 0.27 per cent, while Nifty Media rose 0.28 per cent and Nifty Pharma surged 0.17 per cent.
Among the sectors that declined, Nifty FMCG fell 0.78 per cent, Nifty IT lost 1.89 per cent, Nifty Metal declined 0.59 per cent, and Nifty PSU Bank fell 0.81 per cent.
The Nifty Private Bank index declined 0.17 per cent, while Nifty Realty fell 1.03 per cent. Brent crude oil prices remained above USD 91 per barrel and were trading higher at the time of reporting.
Gold prices moderated 0.47 per cent to ₹1,55,205 per 10 grams for 24 karat, while silver prices declined 1.20 per cent to ₹2,35,200 per kg at the time of reporting.
Riyank Arora, Associate Vice President – HNI & Derivatives, Hedged.in, said the market decline appeared to be routine profit booking rather than a change in the broader trend.
“Today’s dip looks like routine profit booking rather than a change in trend, provided the key supports hold. The larger picture still favours the bulls. A buy-on-dips approach in quality names, backed by disciplined risk management, remains the sensible way to play this,” Arora said.
Global markets also remained under pressure. In Asian markets, Japan’s Nikkei 225 fell 2.54 per cent to 67,505, while Singapore’s Straits Times declined 1.16 per cent to 5,701. Taiwan’s weighted index lost 1.21 per cent to close at 45,308, while South Korea’s KOSPI declined 1.57 per cent to 6,869. (ANI)