Indian Stock Market Declines for Sixth Session Amid US-Iran Tensions

The Indian stock market extended its losing streak for the sixth consecutive session on Tuesday, August 18, due to renewed geopolitical tensions between the United States and Iran. The Nifty 50 declined, while the Sensex fell by 492 points or 0.63%. This decline means that the Sensex has lost 1.08% over three consecutive sessions, and the Nifty has fallen 1.74% across six straight sessions.

The volatility in the market was also driven by Brent crude rising above the psychologically important $91-a-barrel mark, adding to concerns about inflation, the current account, and the rupee's value. The Indian rupee also weakened against the US dollar, quoted around 95.6500 per dollar. A weaker rupee can amplify the impact of higher crude prices because India pays for most of its oil imports in US dollars.

The market breadth remained negative, with 2,384 declines on the BSE compared to 1,930 advances. The broader market showed relative resilience compared to the benchmark indices, with the BSE 150 MidCap Index declining by 0.35%, while the BSE 250 SmallCap Index gained 0.19%. Technology stocks were among the major laggards during Tuesday's session.