Sensex, Nifty fall for 4th day as Brent crude nears $100
- Sensex and Nifty fell for the fourth straight day
- Brent crude oil prices neared $100 per barrel mark
- Investors worried about impact on inflation and fiscal deficit
Markets under pressure as oil prices climb
Indian stock markets extended their losing streak to the fourth consecutive session on Thursday, dragged down by a sharp surge in global crude oil prices. The BSE Sensex fell over 400 points in early trade, while the NSE Nifty slipped below the 19,800 mark.
Brent crude futures rose to near $100 per barrel, raising concerns about higher inflation and a widening current account deficit for India, which imports over 80% of its oil requirements.
Investors flee risk assets
Broader market indices also traded in the red, with midcap and smallcap stocks witnessing selling pressure. Analysts attributed the sell-off to global cues and rising geopolitical tensions in the Middle East.
Foreign portfolio investors have been net sellers in recent sessions, adding to the downward momentum. Domestic institutional investors, however, provided some support through selective buying.
Sectoral impact and top losers
All major sectoral indices ended lower, with oil marketing companies, airlines, and auto stocks bearing the brunt of the surge in crude prices. Shares of Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum fell between 2% and 4%.
IT and banking stocks also declined, reflecting broad-based weakness. The Nifty Bank index dropped over 1%, dragged by losses in heavyweight lenders such as HDFC Bank and ICICI Bank.
What analysts are saying
Market participants said the rally in crude oil is the key trigger for the current correction. A sustained rise above $100 per barrel could force the Reserve Bank of India to maintain a hawkish stance on interest rates.
Investors are also watching the upcoming US Federal Reserve meeting for cues on global monetary policy. Any surprise rate hike could further dampen sentiment in emerging markets like India.
What to watch next
Traders will closely track crude oil prices and any official commentary from the government on possible measures to mitigate the impact. The next trigger for the market could be monthly auto sales data and the progress of the monsoon session of Parliament.