By The Sensex and Nifty extended their losing streak to a third straight session on Tuesday, as a spike in crude oil prices weighed on sentiment.
The Sensex closed 373.93 points, or 0.49%, lower at 76,570.35, while the Nifty50 fell 141.35 points, or 0.59%, to 23,914.45.
The declines followed overnight US-Iran strikes that stoked fears of supply disruptions from the Strait of Hormuz, sending Brent crude up 0.76% to $95.37 a barrel.
Nifty Auto dropped 2% to lead the sectoral losses, with IT and Media also underperforming, while Oil and Gas, PSU Bank and Realty stocks outperformed.
Eicher Motors, Wipro and Bajaj Auto were among the top Nifty50 losers, as rising bond yields added to the pressure on risk appetite.
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.
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.
Photo of the Bombay Stock Exchange building, Wikimedia Commons, CC BY 2.0
