India
oi-Gaurav Sharma
Indian stock markets extended their decline on Tuesday, with the Sensex and Nifty falling more than 0.8% in early trade as investors remained cautious amid rising crude oil prices, higher bond yields and continued foreign investor selling.
The Nifty 50 was trading at 22,586.60, down 194 points or 0.85%, around 10:25 am. The BSE Sensex stood at 72,138.99, declining 633 points or 0.87%.
Indian stock markets, including the Sensex and Nifty, fell sharply on Tuesday, losing nearly Rs 4 lakh crore as investors reacted to rising crude oil prices ($107 Brent), a rupee weakening past 96 per dollar, higher bond yields, and ongoing foreign investor selling.
The sharp sell-off wiped out nearly Rs 4 lakh crore from the combined market capitalisation of BSE-listed companies shortly after the opening bell, taking the total market value to around Rs 474 lakh crore.
Why are Sensex and Nifty falling?
Rising crude oil prices remained one of the biggest concerns for investors. Brent crude crossed $107 per barrel, while WTI crude moved above $94 amid continuing uncertainty in the oil-rich Middle East.
The developments surrounding the US-Iran conflict and negotiations also kept global investors on edge. US President Donald Trump denied reports that Washington had offered Iran sanctions relief and access to frozen funds in exchange for concessions linked to its nuclear programme.
Domestic markets were also pressured by a weakening rupee. The Indian currency slipped beyond the Rs 96-per-dollar mark, reaching 96.1450 against the US dollar.
Higher bond yields added to the pressure on equities, as rising yields can make fixed-income assets more attractive compared with riskier investments such as stocks.
FII selling adds to pressure
Foreign institutional investors continued to remain net sellers of Indian equities. Provisional NSE data showed that foreign investors sold shares worth more than Rs 5,353 crore on Monday.
According to market data cited by analysts, foreign investors had recorded equity outflows of around Rs 25,682 crore through exchanges during the month up to the previous week.
Global markets also under pressure
The sell-off in India followed weakness across global markets.
In the US, the Nasdaq fell more than 0.9%, while the S&P 500 declined around 0.8% in the previous session. Asian markets also traded lower, with Japan’s Nikkei dropping more than 1% and Hong Kong’s Hang Seng and South Korea’s Kospi also declining.
On Dalal Street, Bajaj Finance was among the major Sensex losers, falling around 2%. The broader market also remained weak, with the Nifty Midcap 100 and Nifty Smallcap 100 both down around 0.8%.
Tuesday’s session also coincides with the monthly expiry of Nifty futures and options contracts, which can contribute to heightened volatility.
