Jaipur: Indian equity markets extended their losing streak to a fourth consecutive session on Thursday, as rising crude oil prices and escalating tensions in West Asia kept investor sentiment weak.
Sensex-Nifty Snapshot
The BSE Sensex fell 364 points, or 0.47%, to close at 76,391.39, while the NSE Nifty50 declined 127 points, or 0.53%, to settle at 23,869.60 — marking the fourth straight session that the index has stayed below the psychological 24,000 mark. Broader markets also came under pressure, with the Nifty Midcap and Smallcap indices falling around 0.99% and 1.01% respectively.
What Drove the Decline
Escalating military tensions between the US and Iran, along with growing concerns over disruptions to oil supply routes through West Asia, pushed Brent crude up nearly 5% to close to $98 a barrel — its highest level in almost five weeks. Costlier crude stoked fresh worries about inflation and the current account deficit for an import-dependent economy like India's, weighing directly on market sentiment.
Sectors Under Pressure
- Realty — the worst-hit sector, with sharp selling in the Nifty Realty index
- Chemicals — Nifty Chemical also featured among the top losers
- Oil & Gas — despite rising crude prices, input-cost concerns kept this sector under pressure too
- Banking — selling in PSU bank stocks added to the drag
Adani Enterprises, Nestlé India, and Shriram Finance were among the top losers on the Nifty50. Notably, SRF shares fell as much as 9% despite posting strong June-quarter results, a move attributed to profit booking. On the defence front, PTC Industries announced it had secured an order from DRDO to develop a titanium cradle for the 105mm Indian Light Weight Tank.
What's Next
Technical analysts see near-term support for the Nifty around 23,600–23,800, while 24,000 is likely to act as resistance over the next few sessions. Market direction going forward will hinge on crude oil prices, the rupee's movement, FII activity, and the ongoing Q1 FY27 earnings season.
Aurelius Business View
The current market weakness is being driven largely by geopolitical risk and the resulting spike in crude oil prices, rather than any fundamental weakness in the domestic economy. Investors would do well to stay cautious rather than react to short-term volatility. Sectors showing resilience on the back of strong quarterly earnings may offer selective buying opportunities, but fresh entries should be weighed carefully against how crude prices and the geopolitical situation evolve.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Stock market investments are subject to market risks. Please consult a certified financial advisor before making any investment decisions. Aurelius Business shall not be held responsible for any investment losses.
