Sensex, Nifty Extend Losses as Rising Oil Prices Weigh on Markets

MUMBAI — Indian benchmark equity indices declined for a second consecutive session Tuesday, closing at their lowest levels since mid-June as rising oil prices and persistent geopolitical tensions weighed on investor sentiment. The 30-share Sensex fell 555.23 points, or 0.73%, to close at 75,577.58. The broader Nifty dropped 144.05 points, or 0.61%, to settle at 23,635.10. Banking and financial stocks were among the biggest drags on the market. SBI Life Insurance Company, ICICI Bank and Axis Bank were among the top losers on the Nifty, adding pressure to the benchmark indices. Broader markets were more resilient. The Nifty MidCap index gained 0.21%, while the Nifty SmallCap index advanced 0.17%. Among sectors, the Nifty Private Bank and Nifty Financial Services indices posted the steepest declines. The Nifty Pharma and Nifty Healthcare indices outperformed, providing some support to the broader market. Market analysts said the continued rise in oil prices, combined with geopolitical uncertainty, remained a major concern for investors and contributed to cautious trading. 'The sharp outperformance of mid- and small-cap stocks over the past five to six months may be difficult to maintain going forward. From a strategic perspective, a greater focus on large-cap stocks and non-equity ETFs appears safer,' a market expert said. 'Sector-wise, defensive and deep-value areas such as Healthcare, Telecom, FMCG, Diversified businesses, and IT can continue to provide an edge to the portfolio,' an analyst said. Analysts said selective buying could continue, but elevated volatility may persist in the near term, making partial profit-taking a prudent strategy for short-term investors. Meanwhile, the rupee weakened to 94.81 against the U.S. dollar, down 0.29%, while the dollar index hovered near 98.95 and Brent crude remained elevated at around $97 a barrel. (Source: IANS)