Photo of the Bombay Stock Exchange building, Wikimedia Commons, CC BY 2.0
Sensex, Nifty slide on oil price shock as auto stocks tumble
The Sensex fell 373.93 points to 76,570.35 on Tuesday as a spike in oil prices and rising bond yields hit investor sentiment, with the Nifty50 down 141.35 points at 23,914.45.
The Sensex and Nifty slid on Tuesday as an oil price shock sent auto stocks tumbling and dented broader investor sentiment.
The Sensex closed 373.93 points, or 0.49%, lower at 76,570.35, while the Nifty50 ended 141.35 points, or 0.59%, down at 23,914.45.
The sell-off followed overnight US-Iran strikes that raised fears of supply disruptions from the Strait of Hormuz, pushing Brent crude up 0.76% to $95.37 a barrel.
Nifty Auto led the decline with a 2% drop, joined by weakness in IT and Media, even as Oil and Gas, PSU Bank and Realty stocks bucked the trend.
Eicher Motors, Wipro and Bajaj Auto ranked among the top Nifty50 losers, with rising bond yields adding further pressure on the market.
Broader markets also came under pressure, with the Nifty MidCap index ending 0.53% lower and the Nifty SmallCap index down 0.37%.
This marked the third straight session of losses for the benchmark indices, as rising bond yields further dented investor risk appetite.
Rising bond yields typically make fixed-income investments more attractive relative to equities, prompting some investors to shift allocations away from stocks.
Markets will be closely watching for further developments in the Middle East, given the direct link between regional tensions and global crude oil supply concerns.
The US and Iran exchanged strikes overnight, intensifying fears of further supply disruptions from the Strait of Hormuz, a key global oil shipping route.
Brent crude rose 0.76% to $95.37 per barrel during the session, adding to inflation concerns among investors.
Nifty Auto was the worst-hit sectoral index, declining 2%, with Nifty IT and Nifty Media also underperforming during the session.
In contrast, Nifty Oil and Gas, PSU Bank and Realty indices outperformed, providing some counterbalance to the broader market decline.
Eicher Motors, Wipro and Bajaj Auto were among the top losers on the Nifty50 index during the session.
Photo of the Bombay Stock Exchange building, Wikimedia Commons, CC BY 2.0