Sensex, Nifty fall for second day as crude prices rise and global tensions weigh on markets

Indian equity markets opened lower on Tuesday, extending losses for a second straight session as rising crude oil prices and mounting geopolitical tensions dampened investor sentiment.

The benchmark Sensex slipped nearly 475 points in early trade to touch an intraday low of 75,541, while the Nifty 50 dropped more than 125 points to trade below the 23,700 mark.

Selling pressure was most visible in information technology, chemicals, real estate, cement and financial stocks, with sectoral indices in these segments falling by more than 2 per cent during morning trade.

Among the major laggards were Infosys, Tech Mahindra, Tata Consultancy Services, HCL Technologies, Wipro, ICICI Bank, Bajaj Finance, Maruti Suzuki, Asian Paints and Dr Reddy’s Laboratories.

In contrast, metal, oil and gas, and PSU banking stocks bucked the broader trend and traded in positive territory.

The Sensex had opened at 75,688, down more than 300 points from the previous close, while the Nifty began the session lower by around 93 points at 23,722.

Market analysts attributed the weak sentiment largely to concerns surrounding geopolitical instability and the sharp rise in global crude oil prices.

Experts said sectors with relatively inelastic demand, such as pharmaceuticals and fast-moving consumer goods (FMCG), were likely to remain resilient despite broader market volatility. They noted that pharmaceutical companies could also benefit from rupee depreciation.

Analysts also pointed to improving trends in private capital expenditure, particularly in capital goods, automobiles and renewable energy sectors. According to market observers, a strong recovery in private investment activity has been overshadowed by negative global developments, but continued momentum in capex spending could support select industrial stocks.

In the commodities market, Brent crude climbed above $105 per barrel, while US benchmark West Texas Intermediate crude approached the $100 mark, intensifying concerns over inflation and input costs.

Asian markets traded mixed during the session. Japan’s Nikkei index advanced modestly and Hong Kong’s Hang Seng posted gains, while South Korea’s KOSPI fell sharply.

Wall Street had ended marginally higher overnight, with both the S&P 500 and Nasdaq recording slight gains.

With IANS inputs