Sensex, Nifty fall for 7th straight session as rising crude oil prices weigh on sentiment
Nifty IT becomes sole gainer sectorally, rising 0.4% and snapping a four-day losing streak on value buying and domestic capital rotation
The Sensex and Nifty both plummeted for the seventh consecutive trading session on Wednesday, with the Nifty closing at 24,078, down 0.32 percent, and the Sensex settling at 76,909, lower by 0.42 percent. The decline was fueled by rising crude oil prices nearing $92 a barrel and diminishing hopes for a US-Iran diplomatic breakthrough.
Sarvam Goel, Founder of Pocketful, noted that a price of $92 for crude remains a significant barrier the market cannot overcome. The Nifty briefly touched a low of 24,028 before recovering slightly, closing above a critical trendline support connecting lows from April and June. The index has since filled a 95-point gap created on July 29, with declines outnumbering advances by nearly 2:1.
Energy, FMCG, Defence, and Media sectors suffered the most, while IT was the lone gainer, rising 0.4 percent. Energy, FMCG, Defence, and Media stocks saw declines of over 1.5 percent. Global bond yields, rising in the US, Germany, and Japan, continued to make developed-market bonds more attractive compared to emerging-market equities.
Indian refiners faced pressure due to rising Gulf and West African crude premiums and narrowing discounts on Russian and Venezuelan crude. Sugar stocks gained up to 10 percent as global raw sugar prices hit a 14-month high and domestic prices increased. The rupee slightly strengthened at 95.74 against the US dollar, gaining 0.03 percent as the US Dollar Index declined 0.26 percent.
The Nifty faces a critical test around the 24,000 mark, with a break below potentially extending the correction towards the 23,650–23,800 range.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
