Sensex, Nifty slide over 2 pc amid crude surge, geopolitical tensions
Mumbai, May 16
Domestic equity markets witnessed another week of sharp correction, with benchmark indices declining over 2 per cent each amid rising crude oil prices and ongoing geopolitical tensions in West Asia.
Nifty declined by 2.2 per cent or 532 points during the week to close at 23,643.5 against the previous Friday's closing, while Sensex dropped 2.7 per cent or over 2,000 points to end at 75,238.
Meanwhile, broader markets remained under heavier pressure, with the mid-cap index falling over 2 per cent and the small-cap index losing nearly 4 per cent.
Sectorally, realty stocks were worst performers, with BSE Realty plunging almost 8 per cent.
Meanwhile, IT stocks also remained under pressure, with the BSE IT index falling 5.7 per cent, followed by auto, capital goods and consumer durable shares.
In addition, banking and PSU stocks also witnessed selling pressure, with the BSE Bankex and BSE PSU indices declining 3 per cent each.
However, few defensive sectors outperformed, with BSE Metal gaining 1.5 per cent, while healthcare stocks rose 1.4 per cent.
From the 30-scrip basket, Titan Company was the top loser, falling 7.6 per cent, followed by Reliance Industries, Tech Mahindra and Mahindra & Mahindra.
According to market experts, investor sentiment remained cautious amid the lack of meaningful de-escalation in West Asia tensions and their impact on crude oil prices, inflation and the rupee.
They said elevated crude prices, rising global bond yields and sustained strength in the US dollar continued to pressure emerging markets, leading to intermittent foreign fund outflows and currency weakness.
Analysts further noted that higher wholesale inflation, fuel price pass-through and elevated bond yields have increased concerns over macroeconomic stability and future monetary policy actions.
In addition, global cues also remained negative as tensions in West Asia continued without any breakthrough.
Moreover, concerns over disruptions in the Strait of Hormuz kept Brent crude oil prices elevated in the $105-110 per barrel range.
Despite the correction, domestic institutional investors continued to provide support to the market, aided by strong retail participation.
Additionally, SIP inflows in April stood at Rs 31,115 crore, helping absorb sustained FII selling.
— IANS
Reader Comments
It's good that DIIs and retail investors are stepping in when FIIs are pulling out. But honestly, we should be worried about inflation and the rupee. Crude at $105-110 will hit our import bill badly. Hope RBI manages this well. Also surprising to see healthcare and metal stocks doing well - defensive plays are working! 🏥📈
Main toh soch raha hoon ki yeh correction ek buying opportunity hai. SIP kar raha hoon regularly. Lekin realty mein 8% drop? That is scary for anyone holding those stocks. Market is telling us to be cautious but not fearful. Stay invested, stay disciplined. 📉➡️📈
I follow Indian markets from the US and this selloff seems largely sentiment-driven. The fundamentals haven't changed much - India's GDP growth is still strong. But global factors like bond yields and dollar strength are creating headwinds. Also, why are IT stocks falling so much? Is it just because of global demand concerns?
My father is a retired banker and he keeps telling me not to panic during corrections. But this time, it's different - geopolitical risks are real and oil prices are going to hurt the common man. Petrol prices will go up, inflation will rise, and then RBI might not cut rates. I feel worried for the middle class. 😞💰
Respectfully, I think the Indian market is overreacting a bit. West Asia tensions have been
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.