MUMBAI, Sept 8: Indian equity markets remained under pressure on Tuesday as rising crude oil prices and escalating tensions in the Middle East weighed on investor sentiment.
The Nifty 50 fell 0.46 per cent to 23,668.85, while the BSE Sensex declined 0.53 per cent to 75,727.30 in morning trade. The movement followed a weak session on Monday, when both benchmarks closed at six-week lows.
Brent crude climbed towards $98 a barrel as concerns over a wider conflict in the Middle East raised fears of disruptions to energy supplies. The development is particularly significant for India, which relies heavily on imports to meet its crude oil requirements.
The rise in energy prices has increased concerns over inflation and corporate costs, while investors are also assessing the potential impact of higher US interest rates on global capital flows.
Most major sectors traded in negative territory, with financial stocks and private-sector banks among those facing selling pressure. HDFC Bank, ICICI Bank and Reliance Industries were among the prominent stocks weighing on the market.
The broader market also weakened, with both mid-cap and small-cap indices declining around 0.3 per cent.
Defence Stocks Buck Trend
Despite the broader weakness, defence-related counters gained after the government approved procurement proposals worth around Rs 1.1 lakh crore.
Bharat Electronics and Hindustan Aeronautics advanced following the procurement decisions, while GE Vernova T&D India also recorded strong gains after securing a major contract.
The market’s decline comes after the Sensex and Nifty had already recorded four consecutive weekly losses. On September 7, the Sensex dropped 382.62 points, or 0.50 per cent, to 76,132.81, while the Nifty ended 118.55 points lower at 23,779.15. IT, metal, PSU bank and media stocks were among the major laggards.
Analysts are expected to closely monitor crude prices, developments in the Middle East and global interest-rate expectations as these factors could continue to influence domestic equities and the rupee in the near term.