Sensex, Nifty extend losses as crude, Middle East tensions weigh
The BSE Sensex was down 117.94 points, or 0.15%, at 77,117.52, while the Nifty 50 fell 44 points, or 0.18%, to 24,110.90 as of 9:25 am. The Sensex opened at 77,218.05, while the Nifty opened at 24,152.05. Brent crude was trading at $91.58 a barrel…
Investors remain concerned that the prolonged uncertainty around the Middle East could keep oil prices elevated. US President Donald Trump said on Tuesday that no talks were taking place with Iran and insisted that the Strait of Hormuz was open, contradicting Iran's assertion that.
The lack of clarity over a possible resolution to the conflict has kept energy markets on edge, with rising crude prices raising concerns about inflation and India's import bill. Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the ongoing weakness in.
What Happened
Rising bond yields are another concern for equities. IT stocks were among the major drags at the open.
The BSE Sensex was down 117.94 points, or 0.15%, at 77,117.52, while the Nifty 50 fell 44 points, or 0.18%, to 24,110.90 as of 9:25 am.
The Sensex opened at 77,218.05, while the Nifty opened at 24,152.05.
Brent crude was trading at $91.58 a barrel, up 0.62%, while WTI crude was at $85.55, up 0.72%.
Key Details
The sectoral picture was mixed but tilted towards weakness. Nifty Financial Services 25/50 fell 0.30%, while Nifty Financial Services ex-Bank declined 0.28%.
Vijayakumar said fears of higher inflation were pushing bond yields higher, with US 30-year yields at their highest levels since 2007.
The Nifty IT index was down 0.54%, with most large IT stocks trading lower.
Eternal was the top Sensex gainer, rising 0.95%, while HCLTech gained 0.92%.
Why It Matters
Nifty Metal was down 0.62%, Nifty Chemicals fell 0.46% and Nifty Midcap Financial Services declined 0.16%. The broader market was also mostly lower.
Sun Pharma and Infosys rose 0.78% each, while NTPC gained 0.46% and Trent advanced 0.41%.
On the losing side, Asian Paints fell 1.59%, Infosys was down 1.54%, HCLTech declined 1.39% and Tech Mahindra lost 1.21%.
What Reports Say
Coverage of the story so far points to:
Tata Steel fell 0.94%, M&M declined 0.88% and Bajaj Finance slipped 0.75%.
Nifty IT fell 0.54%, while Nifty Realty declined 0.35% and Nifty Auto dropped 0.35%.
Continued reporting by India Today as more details emerge
