Sensex, Nifty post notable losses over global tensions

Mumbai: The Indian equity markets posted notable losses Thursday, as lack of progress in negotiations surrounding the Strait of Hormuz eroded investor optimism.

At the closing bell, the Sensex was down 539 points, or 0.70 per cent on an intraday basis at 76,933. The Nifty dipped 116 points, or 0.48 per cent, to close at 24,090.

Nifty Bank tanked 0.47 per cent or 273 points to settle at 57,509.

“Expiry-led volatility and the lack of a diplomatic breakthrough in the Middle East continue to keep markets range-bound in the near term. While a degree of higher energy prices is largely factored into earnings expectations, the recent moderation in crude oil prices and long-term bond yields is supporting the inflation outlook,” an analyst said.

The broader markets performed in line with the benchmark indices, as Nifty Midcap 100 index lost 0.10 per cent, while the NSE Smallcap 100 declined 0.13 per cent. Nifty Next 50 dipped 0.21 per cent.

All sectoral indices on NSE traded with losses except private bank, pharma and consumer durables, which recorded marginal gains. Nifty cement, media, metals and PSU bank emerged as top losers, down 1.33 per cent, 0.89 per cent, 0.86 per cent and 0.94 per cent respectively.

According to analysts, the index has slipped below the rising channel on the daily timeframe, indicating an increase in bearishness in the market. In addition, the index has fallen below the 50EMA, confirming a weakening trend.

The Indian rupee (INR) traded lower against the US dollar (USD) as it rebounded to near 95.50 from its 10-day low of 95.40 posted in the previous session.

“Meanwhile, FII inflows and resilient earnings momentum remain supportive for Indian equities, particularly mid-caps, where several segments are relatively insulated from global uncertainties and continue to benefit from strong domestic demand trends,” a market participant said.

Investors remain keen on the US Fed chair’s upcoming Jackson Hole address for signals on inflation, interest rates, and the policy outlook, which could influence global risk sentiment and capital flows into emerging markets.