Sensex Slides 417 Points As Oil Jitters Bite, Rupee Stages Sharp Comeback

Mumbai witnessed a dip in Indian equity markets on Thursday, as concerns over inflation and potential sustained elevated interest rates gained momentum. The Sensex declined by 417.49 points, or 0.55%, to close at 76,152.86, while the Nifty 50 experienced a drop of 41 points, or 0.17%, to settle at 23,873.45. Market analysts noted that the psychological 24,000 level remains a critical resistance point for the Nifty.

Should the index fall below this mark, it may trigger further selling pressure, potentially leading the benchmark towards the 23,600 level.

The Nifty faced resistance at the 24,000 mark, with analysts highlighting that a decisive break below 23,800 could accelerate the downward trend. Among the biggest Nifty laggards were Bajaj Auto, Tech Mahindra, and Trent. However, the broader market demonstrated greater resilience. The Nifty MidCap index rose by 0.37%, while the Nifty SmallCap index climbed by 1.2%.

Sector-wise, Nifty Realty led the decline, plummeting over 2%. Other affected sectors included media, private banking, PSU banking, and banking indices. Meanwhile, the Indian rupee maintained its strength at Rs 94.48 against the US dollar, buoyed by enhanced dollar liquidity stemming from FCNR deposit inflows of approximately $127 billion.

This provided an additional cushion against drastic currency fluctuations. Experts forecast the rupee to maintain a positive outlook, with a projected range between 94.25 and 95.00. However, investor sentiment remained cautious, as rising crude oil prices posed the risk of heightened inflationary pressures, alongside bond yield fluctuations raising questions about the trajectory of interest rates.