Benchmark equity indices Sensex and Nifty declined on Tuesday, pressured by rising crude oil prices and renewed tensions in West Asia. At 11 am, the Sensex was down 392.18 points, or 0.5%, at 77,335.98, while the Nifty fell 93.35 points, or 0.38%, to 24,194.30. Most major Nifty sectoral indices traded lower, with pharma and Oil & Gas being the exceptions.
Why Are Sensex And Nifty Falling Today?
Several factors are weighing on Indian equities, including higher crude prices, weak global markets, foreign investor selling, rising US bond yields, rupee weakness and losses in IT stocks.
Why Are Rising Crude Oil Prices Hurting The Stock Market?
Brent crude rose 0.63% to $91.46 a barrel after Iran indicated a potentially more offensive stance and US President Donald Trump ruled out extending the ceasefire arrangement. Higher crude prices are a concern for India because the country is a major oil importer. A sustained rise in crude prices could increase India’s import bill and revive inflation concerns.
How Are Weak Global Markets Affecting Indian Equities?
Asian markets traded lower on Tuesday, with South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite and Hong Kong’s Hang Seng all under pressure. US markets also closed lower on Monday, while US stock futures declined. The Nasdaq had fallen 0.6%.
How Much Did FIIs Sell On Monday?
Foreign Institutional Investors sold Indian equities worth Rs 2,535.10 crore on Monday, marking their highest selling in three weeks. Continued FII outflows can put additional pressure on domestic equities by increasing selling pressure and reducing foreign capital flows.
Why Are Rising US Bond Yields Negative For Indian Markets?
The US 10-year bond yield rose to 4.73%. Higher US yields can make American assets more attractive to global investors compared with emerging-market investments, potentially reducing foreign inflows into Indian equities.
How Is The Falling Rupee Affecting The Stock Market?
The rupee weakened by 7 paise to 95.68 against the US dollar on Tuesday, pressured by elevated crude prices and continued demand for the US currency. The rupee had declined 19 paise to close at 95.61 on Monday.
Why Are IT Stocks Falling Today?
The Nifty IT index fell 1.4%, making it the biggest sectoral loser amid continued uncertainty surrounding US-Iran tensions. Among individual stocks, Colgate-Palmolive India fell around 3% after brokerages raised concerns about margins following an analyst meeting. Meanwhile, Indo-MIM gained 10% after reporting a 32% rise in June-quarter profit.
What Is The Technical Outlook For Nifty?
Geojit Investments Chief Market Strategist Anand James said bargain buying had helped limit the market’s decline, although gains remained capped. He identified 24,540-24,666 as an immediate resistance zone. A failure to hold 24,170 could expose the Nifty to a potential decline towards 23,575.
Disclaimer: The views and investment opinions cited above are those of the respective experts and do not constitute investment advice. Investors should consult certified financial advisers before making investment decisions.
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