Sensex, Nifty Fall for Fourth Straight Session; Oil, Iran Tensions Weigh
- Sensex and Nifty fell for the fourth straight session on July 23.
- Rising crude oil prices and Iran tensions were key drags.
- Investors remained cautious amid global uncertainty.
Markets Extend Losing Streak
Indian benchmark indices closed lower for the fourth consecutive session on Thursday, July 23, as rising crude oil prices and escalating tensions in Iran continued to weigh on investor sentiment. The BSE Sensex ended the day down 312 points at 58,420, while the NSE Nifty slipped 94 points to settle at 17,380.
Selling pressure was broad-based, with losses led by banking, auto, and metal stocks. The broader market also took a hit, as midcap and smallcap indices fell in tandem with the benchmarks.
Oil Prices Remain a Concern
Crude oil prices edged higher on Thursday, adding to a rally that has seen Brent crude hover near $85 per barrel. The rise in oil prices is a significant worry for India, which imports over 80% of its crude oil needs. Higher import costs can widen the trade deficit and put pressure on the rupee, which in turn can fuel inflation.
Analysts said the sustained uptick in oil is a key reason for the recent weakness in domestic equities. “Oil at elevated levels is a double whammy for India — it impacts both fiscal and current account deficits, and it also stokes inflation fears,” said a market strategist at a domestic brokerage.
Iran Tensions Add to Uncertainty
Geopolitical tensions in the Middle East, particularly around Iran, have added to the risk-off mood. Investors are wary of any escalation that could disrupt global oil supply routes, further pushing up crude prices. The situation remains fluid, with no immediate signs of de-escalation.
Foreign portfolio investors (FPIs) have been net sellers in recent sessions, pulling money out of Indian equities amid the global uncertainty. Data from the exchanges showed FPIs sold shares worth over ₹1,200 crore on a net basis in the previous session, adding to the selling pressure.
What to Watch
Market participants will be closely watching global cues, especially oil price movements and any developments in the Iran situation. The upcoming monthly auto sales data and corporate earnings reports will also provide direction in the near term. Traders are advised to maintain caution until clarity emerges on these fronts.