MUMBAI — Indian benchmark equity indices fell for a second consecutive session Tuesday, closing at their lowest levels since mid-June as rising oil prices and persistent geopolitical tensions weighed on investor sentiment.
The 30-share Sensex dropped 555.23 points, or 0.73%, to close at 75,577.58. The broader Nifty fell 144.05 points, or 0.61%, to settle at 23,635.10.
Banking and financial stocks were among the biggest drags on the benchmarks. SBI Life Insurance Company, ICICI Bank and Axis Bank were among the top losers on the Nifty.
Broader markets, however, remained relatively resilient. The Nifty MidCap index gained 0.21%, while the Nifty SmallCap index advanced 0.17%.
Among sectors, the Nifty Private Bank and Nifty Financial Services indices recorded the steepest declines. The Nifty Pharma and Nifty Healthcare indices outperformed and provided some support to the broader market.
Market analysts said elevated oil prices and continuing geopolitical uncertainty remained key concerns for investors and contributed to cautious trading.
“The sharp outperformance of mid- and small-cap stocks over the past five to six months may be difficult to maintain going forward. From a strategic perspective, a greater focus on large-cap stocks and non-equity ETFs appears safer,” a market expert said.
“Sector-wise, defensive and deep-value areas such as Healthcare, Telecom, FMCG, Diversified businesses, and IT can continue to provide an edge to the portfolio,” an analyst said.
Analysts added that while selective buying could continue, elevated volatility may persist in the near term, making partial profit-taking a consideration for short-term investors.
Meanwhile, the rupee weakened 0.29% to 94.81 against the U.S. dollar, while the dollar index hovered near 98.95 and Brent crude remained elevated at around $97 a barrel. (Source: IANS)
