Indian Markets Witness Sharp Decline as Global Crude Oil Prices Surge
Mumbai, India – In a surprising turn of events, India’s benchmark indices, namely the Nifty and the Sensex, experienced a significant drop on Wednesday. The Nifty Bank saw a decline of over 500 points, but the Nifty Pharma index managed to outperform other sectors. Traders attribute this decline to a sharp jump in global crude oil prices and lackluster trends in global markets.
The 30-share BSE Sensex, after a brief respite, tumbled 551.07 points or 0.83% to settle at 65,877.02. Throughout the day, it fluctuated and ultimately reached 65,842.10, marking a decrease of 585.99 points or 0.88%. Similarly, the Nifty witnessed a decline of 140.40 points or 0.71% to 19,671.10. The Nifty Bank also fell by 1.1%, closing at 43,888.
Among the Sensex firms, Bajaj Finance experienced the largest decrease, falling by nearly 3%. Other major laggards included Bajaj Finserv, Axis Bank, HDFC Bank, Reliance Industries, NTPC, ICICI Bank, and IndusInd Bank. On the other hand, Tata Motors, Sun Pharma, Maruti, and Mahindra & Mahindra emerged as gainers.
Rupak De, Senior Technical Analyst at LKP Securities, noted the prevalence of selling pressure throughout the day. He mentioned, “The Nifty found resistance at 19,850, which led to a fall towards 19,650. Going forward, the index may witness a range-bound move until it breaks out in either direction. A fall below 19,650 might give bears more strength, and the Nifty might descend towards 19,250. On the higher end, a decisive move above 19,850 might open the way towards 20,200.”
Meanwhile, Asian markets painted a different picture, with Shanghai and Hong Kong closing in negative territory, while Seoul and Tokyo settled in the green. Furthermore, European markets were trading lower, and the US markets ended on a mixed note.
Adding fuel to the fire, the global oil benchmark, Brent crude, experienced a notable surge of 3.36%, reaching USD 92.92 per barrel. This rise in crude oil prices has raised concerns among market participants, further impacting the Indian markets.
In terms of investment activity, Foreign Institutional Investors (FIIs) reportedly purchased equities worth Rs 263.68 crore on Tuesday, according to exchange data.
It is important to note that the BSE benchmark had recently climbed 261.16 points or 0.39% to settle at 66,428.09 on Tuesday, while the Nifty gained 79.75 points or 0.40% to reach 19,811.50.
Overall, the Indian markets face turbulent times due to global factors, primarily driven by the rise in crude oil prices. Market participants are advised to remain cautious and keep a close eye on market developments as the situation continues to evolve.
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