Indian Equity Markets Plummet Amid Crude Price Surge and Geopolitical Tensions
Indian equity markets continued their recent decline on Tuesday, with benchmark indices falling sharply amid persistent global and domestic uncertainties. The Sensex plummeted 555.23 points, or 0.73%, to close at 75,577.58, while the Nifty 50 declined 144.05 points, or 0.61%, to end at 23,635.10.
The market's weakness was largely attributed to elevated crude oil prices, which have been driven higher by renewed geopolitical tensions in the Middle East. Brent crude has moved closer to the $100-per-barrel mark, raising concerns about inflation, economic growth, and global interest rates. The stronger yen also added pressure on Japanese exporters.
The rupee weakened to around Rs 94.82 against the US dollar, with investors remaining cautious ahead of key US inflation data. Defence stocks were relatively firm following the government's approval of major defence procurement proposals. However, the market overall remains in a 'sell on rise' mode, with DII buying providing some support.
Ponmudi R, CEO of Enrich Money, noted that the Indian equity markets have been extending their recent decline to a seven-week low, maintaining the prevailing bearish trend. The broader market mood remained risk-averse, with geopolitical risks and energy-price concerns overshadowing positive developments in regional markets.