Benchmark equity indices Sensex and Nifty ended lower on Monday, extending their recent losing streak as rising crude oil prices and persistent geopolitical tensions in West Asia weighed on investor sentiment.
The 30-share BSE Sensex declined 281.09 points, or 0.36 per cent, to settle at 77,728.16. The index remained under pressure for most of the session and fell as much as 555.5 points, or 0.71 per cent, to hit an intraday low of 77,453.75 before recovering some ground towards the close.
The NSE Nifty also extended its decline for the fifth consecutive trading session. The 50-share index fell 78.35 points, or 0.32 per cent, to finish at 24,287.65.
Market sentiment remained cautious as investors continued to monitor developments in West Asia and the impact of elevated crude oil prices on the domestic economy. Higher oil prices are a particular concern for India, one of the world's largest crude oil importers, as a sustained increase can put pressure on the country's import bill, inflation and corporate margins.
Brent crude, the global oil benchmark, rose 1.11 per cent to USD 89.50 a barrel, adding to concerns among equity investors. “Indian equity markets ended marginally lower on Monday, extending last week’s cautious tone as persistent uncertainty surrounding the US-Iran conflict and the absence of meaningful progress toward reopening the Strait of Hormuz kept investors on the sidelines,” Ponmudi R, CEO of Enrich Money, said.
The Strait of Hormuz is a crucial global energy corridor, and any prolonged disruption or uncertainty surrounding shipping through the waterway could have significant implications for international crude supplies and prices.
Among the Sensex constituents, technology stocks were among the biggest drags on the benchmark. Infosys, HCL Technologies, Tata Consultancy Services and Tech Mahindra declined, while Sun Pharma and ITC were also among the major laggards.
On the other hand, Tata Steel, Axis Bank, Reliance Industries and Bharat Electronics were among the notable gainers, providing some support to the broader market and helping the Sensex recover from its day's lows.
“Indian equity markets extended their losing streak for a fifth consecutive session on Monday as elevated crude oil prices continued to weigh on investor sentiment despite a recovery from intraday lows,” said Hariselvan Radhakrishnan, Founder and CEO of HST Wealth.
Trading activity across global markets remained mixed. In Asia, Japan's Nikkei 225, the Shanghai SSE Composite index and Hong Kong's Hang Seng index ended higher. South Korean equity markets remained closed for a holiday.
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European markets were trading on a mixed note during the Indian session, while US markets had closed lower on Friday, adding to the cautious global backdrop.
Despite the continued weakness in domestic equities, foreign institutional investors remained active in the market. According to exchange data, FIIs bought equities worth Rs 508.12 crore on Friday.
The latest decline follows a weak session on Friday, when the Sensex fell 70.71 points, or 0.09 per cent, to settle at 78,009.25. The Nifty declined 29.85 points, or 0.12 per cent, to close at 24,366.
With the Nifty now declining for five straight sessions, investors are likely to closely track crude oil prices, geopolitical developments and global market cues in the coming sessions. Continued volatility in energy markets could remain a key factor influencing domestic equities in the near term.
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