Sensex and Nifty retreated further on Tuesday, with the Sensex closing 555.23 points lower at 75,577.58 and the Nifty50 settling at 23,635.10, down 144.05 points.
Banking stocks led the losses, with SBI Life Insurance Company, ICICI Bank and Axis Bank among the top decliners on the Nifty50.
It was the second straight day of losses, following Monday’s 382-point Sensex decline attributed to crude oil prices and US-Iran tensions.
The Nifty MidCap and Nifty SmallCap indices bucked the trend, rising 0.21 percent and 0.17 percent respectively.
Analysts said continued volatility in crude oil prices remained the key risk factor for Indian equity markets.
Tuesday marked the second straight session of losses for the Sensex, following Monday’s 382-point decline that was also attributed to crude oil prices and Gulf tensions.
SBI Life Insurance Company, ICICI Bank and Axis Bank were among the top losers on the Nifty50 index during Tuesday’s session.
The broader markets showed a different pattern than the benchmark indices, with the Nifty MidCap rising 0.21 percent and the Nifty SmallCap rising 0.17 percent even as the Sensex and Nifty fell.
Rising crude oil prices directly affect India’s economy given the country’s heavy dependence on imported oil, which widens the trade deficit and pressures the rupee when prices climb.
TCS was among the IT stocks under pressure during Tuesday’s trade, as the sector remained sensitive to signals on US interest-rate policy.
The BSE Sensex and NSE Nifty are the two primary benchmark indices used to track the overall health of the Indian stock market, comprising the country’s largest listed companies by market capitalisation.
Foreign institutional investor selling has been a recurring theme in recent sessions, adding to the pressure from oil prices and geopolitical uncertainty.
Analysts have flagged continued volatility as long as Gulf tensions and crude oil supply concerns remain unresolved, with markets likely to stay reactive to fresh developments.
National Stock Exchange building, Mumbai, Wikimedia Commons, CC BY-SA 4.0
