Nifty Falls Below Critical Support as Oil Prices Rise Amid Global Uncertainties
The Indian equity market experienced a decline on Monday, causing the Nifty 50 to fall below its critical support level of 23,600. The market's performance was subdued due to rising Brent crude oil prices and investor preference for mid-cap and small-cap segments.
NSE's Nifty dropped by 118.55 points or 0.5% to close at 23,779.15, while BSE's Sensex declined by 382.62 points or 0.5% to end at 76,132.81.
Sham Chandak, head of institutional equities at Elios Financial Services, attributed the underperformance to the upswing in oil prices due to renewed tensions and the accelerated supply of paper in the form of IPOs, promoter and PE fund exits, and fund raises through QIPs and preferential allotments.
The market is also sensing discomfort due to rising US bond yields, which are close to 2023 highs at 4.8%.