Sensex tanks 493 points; Nifty falls for sixth day as crude oil jumps to USD 91 per barrel

Key points

• The 30-share BSE Sensex was down 492.70 points, or 0.63 per cent, to settle at 77,235.46, registering its third day…
• The 50-share NSE Nifty declined for the sixth day, sliding 132.75 points, or 0.55 per cent, to end at 24,154.90.
• While Shanghai's SSE Composite index and Hong Kong's Hang Seng index ended marginally higher, in Asian markets, South Korea's Kospi…
• On Monday, the Sensex declined 281.09 points, or 0.36 per cent, to settle at 77,728.16.

As elevated crude oil costs and fading hopes of a diplomatic breakthrough in West Asia weighed heavily on investors’ sentiment, NEW DELHI: Market benchmark indices ended lower on Tuesday, with the Sensex falling 493 points and the Nifty dropping to 24,154.90 level.

The 30-share BSE Sensex was down 492.70 points, or 0.63 per cent, to settle at 77,235.46, registering its third day of decline. During the fag-end of trade, it tanked 493.8 points, or 0.63 per cent, to 77,234.36.

From the Sensex pack, Asian Paints, Infosys, HCL Tech, Bharti Airtel, Tata Consultancy Services, and Hindustan Unilever were among the major laggards.

What happened

Axis Bank, Power Grid, Mahindra & Mahindra, and Bajaj Finance were among the winners.

Brent crude, the global oil benchmark, went up 0.17 per cent to USD 91.02 per barrel.

While rising US bond yields and weak global cues prolonged the risk-off trend in Indian equities, “Crude oil remained the primary drag on market sentiment. Investor anxiety increased as hopes for a Middle East resolution faded after the expiration of the temporary US-Iran ceasefire, heightening concerns concerning renewed inflation,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.

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 went on.

The details

While Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended marginally higher, in Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 settled lower.

Markets in Europe were trading on a mixed note.

US markets ended in negative territory on Monday.

“Indian equity markets extended their losing streak to a sixth consecutive session on Tuesday, tracking weakness across global markets as rising crude oil prices and a sharp sell-off in US Treasuries weighed on investor sentiment,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, stated.

Why it matters

Fading hopes of a diplomatic breakthrough in the Middle East dampened risk appetite, he added.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,535.10 crore on Monday, according to exchange data.

On Monday, the Sensex declined 281.09 points, or 0.36 per cent, to settle at 77,728.16. The Nifty was down 78.35 points, or 0.32 per cent, to end at 24,287.65, taking the losses to the fifth day.