Crude surge, Fed rate fears drag Nifty lower
Nifty 50 settled at 23,779, down 118 points or 0.50%, while the Sensex fell 382.62 points to 76,132.81
Equities continued their downward trend on Monday, driven by a sharp increase in crude oil prices and concerns over the Strait of Hormuz, alongside growing fears of a Federal Reserve rate hike following US jobs data. The Nifty 50 closed at 23,779.15, down 0.50 percent, while the Sensex fell 382.62 points. Bank Nifty ended at 57,088.30, down 281.35 points.
The Nifty Midcap 100 and Smallcap 100 also declined, with broad-based selling impacting IT, Media, PSU Banks, Realty, Metals, and Cement sectors. Stronger-than-expected US non-farm payrolls data raised expectations of a September Fed rate hike, increasing market-implied odds from 50 percent to nearly 60 percent. Crude oil prices, particularly Brent crude near $96.7 a barrel, remained a significant pressure point, with WTI in the $90-$93 range.
Gold and silver prices eased, with spot gold at nearly $4,410 an ounce and silver at $65.7. The Indian rupee remained stable around ₹84.4 to the US dollar, with RBI intervention offsetting the impact of high crude prices. The Nifty India VIX rose 5.62 percent, indicating heightened volatility. Analysts expect the sell-on-rise strategy to persist until the Nifty reclaims the 24,000 level.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
