Indian Markets Extend Losing Streak
Indian equity benchmarks, Sensex and Nifty, concluded their fourth consecutive session in negative territory on Thursday, as escalating geopolitical tensions and a sharp rise in crude oil prices dampened investor mood.
The 30-share BSE Sensex shed 363.66 points, or 0.47 percent, closing at 76,391.39. Similarly, the broader NSE Nifty50 index saw a decline of 126.65 points, or 0.53 percent, settling at 23,869.60.
Key Stocks and Sectors Under Pressure
Major heavyweight stocks contributing significantly to the Sensex's slump included Reliance Industries Ltd (RIL), HDFC Bank Ltd, Bharti Airtel Ltd, Bajaj Finance Ltd, ICICI Bank Ltd, State Bank of India (SBI), Axis Bank Ltd, Adani Ports and Special Economic Zone Ltd, Larsen & Toubro Ltd (L&T), and InterGlobe Aviation Ltd, the parent company of IndiGo.
Sectoral performance was predominantly negative, with realty, energy, and banking segments acting as the primary drags on the market. However, targeted buying in certain auto and IT industry leaders helped mitigate the overall losses to some extent.
The broader market mirrored this cautious sentiment, with both the Nifty Smallcap100 and Nifty Midcap100 indices each falling approximately 1 percent, underscoring a prevailing risk aversion extending beyond frontline equities.
Geopolitical Tensions and Crude Oil Concerns
Analysts pointed to several factors fueling the market's decline. Ajit Mishra, SVP (Research) at Religare Broking, highlighted that investor sentiment remained subdued as Brent crude prices continued their ascent, nearing $99 per barrel following reports of fresh attacks on oil tankers in the Red Sea. These developments have intensified fears over potential supply disruptions.
Vinod Nair, Head of Research at Geojit Investments, emphasized the growing market apprehension as crude oil prices edged closer to the critical $100-a-barrel mark. He noted that elevated energy prices are strengthening expectations of a "higher-for-longer" global interest rate environment, consequently reducing risk appetite for emerging markets like India.
Mishra further added that "persistent geopolitical tensions in the Middle East, disappointing quarterly earnings from select large-cap companies, and continued weakness in the rupee" collectively weighed on sentiment, prompting market participants to remain on the sidelines.
Nifty Technical Outlook
From a technical perspective, Osho Krishan, Chief Manager – Technical & Derivative Research at Angel One, identified the 23,800-23,780 range as the immediate support level for the Nifty50. He cautioned that "a decisive breach below this range could accelerate selling pressure and trigger fresh short positions, dragging the index towards the 23,650-23,600 range in the intermediate term."
Conversely, Krishan projected the 24,000-24,100 range as a strong resistance level. He stated that "unless the index reclaims this hurdle with strong conviction and sustained buying momentum, the near-term bias is expected to remain fragile."