Sensex Falls for 4th Day as Oil Prices Spike, Global Cues Weigh
- Sensex dropped 364 points in the fourth straight session of losses.
- Rising crude oil prices were a major factor behind the sell-off.
- Weak global cues and investor caution added to the downward pressure.
Markets Extend Losing Streak
Indian equity benchmarks continued their downward march on Thursday, with the Sensex shedding 364 points to close lower for the fourth consecutive session. The broader market also felt the heat, as rising crude oil prices and weak global cues kept investors on edge.
The 30-share BSE Sensex ended the day at 67,804, down 0.53%. The NSE Nifty50 slipped below the 20,100 mark, reflecting broad-based selling pressure across most sectors.
Oil Spike Rattles Sentiment
A sharp spike in international crude oil prices was the primary trigger for the sell-off. Brent crude climbed past $84 per barrel, raising concerns about higher import costs and inflationary pressure on the Indian economy.
Energy stocks bore the brunt, though gains in some oil marketing companies were capped by fears of government intervention to control pump prices. Analysts said any sustained rise in crude could widen India's trade deficit and put pressure on the rupee.
Global Cues Add to Pressure
Weakness in Asian and European markets added to the negative bias. Concerns over slowing global growth, particularly in China, and uncertainty ahead of key US economic data kept risk appetite low.
Foreign institutional investors remained net sellers, pulling out funds for the third day in a row. Domestic institutional buying was not enough to counter the selling pressure, leaving the market in a cautious mood.
Sectoral Performance Mixed
While most sectoral indices ended in the red, IT and pharma stocks managed to hold ground. Banking and auto stocks were among the worst hit, with the Nifty Bank index falling over 0.8%.
Heavyweights like Reliance Industries, HDFC Bank, and ICICI Bank contributed the most to the Sensex's decline. Midcap and smallcap stocks also faced selling pressure, though losses were relatively muted compared to the previous sessions.
Market participants are now watching for cues from the upcoming corporate earnings season and any policy signals from the Reserve Bank of India. Volatility is likely to remain elevated in the near term.
What to watch: Investors will closely track the trajectory of crude oil prices and the movement of the rupee against the dollar. Any sharp moves in global markets overnight could set the tone for Friday's session.