Sensex, Nifty Fall as US-Iran Ceasefire Ends; Crude Oil Rises, IT Stocks Drag Markets
· Free Press Journal
Indian stock markets remained under pressure on Tuesday as concerns over renewed tensions in the Middle East weighed on investor sentiment.
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The expiry of the temporary US-Iran ceasefire raised fears of further escalation, while a rise in crude oil prices and weakness in IT stocks added to the selling pressure.
The Sensex opened 309 points lower at 77,418 and was down 310 points, or 0.24%, at 77,400 by 10:30 am.
The Nifty 50 opened at 24,223 and traded 66 points, or 0.28%, lower at 24,220.
Sensex Falls 281 Points, Nifty Slips Below 24,300 After Volatile TradeCrude oil, bond yields raise concerns
Brent crude climbed above $91 a barrel as expectations of an extension to the US-Iran ceasefire weakened. Any disruption to oil supplies could have wider implications for India, which relies heavily on crude imports.
Higher oil prices could increase India's import bill and add pressure on inflation, corporate profitability and economic growth.
IT stocks lead market decline
IT stocks were among the biggest losers in early trading, with the Nifty IT index falling 1.24%. Infosys declined 1.58%, while Asian Paints fell 1.59%. HCLTech, Tech Mahindra and TCS also traded lower.
The weakness extended to several other sectors. The Nifty Realty index dropped 1.60%, while financial and PSU banking indices also declined. Broader market indices such as the Nifty 200 and Nifty 500 fell, while the Nifty Smallcap 100 remained marginally positive.
There were some pockets of strength, with Nifty Pharma, Healthcare, Auto and Oil & Gas gaining.
The India VIX rose 0.52% to 11.39, indicating increased caution among investors.