Sensex Declines 417 points, Nifty Slips Below 24,000 as Oil Surge, Global Cues Weigh

Mumbai, April 28:Benchmark indices ended in the red on Tuesday as stocks slipped amid volatility driven by rising crude oil prices and global uncertainties.

The BSE Sensex fell 417 points, or 0.54%, to close at 76,887, and the Nifty 50 declined 97 points, or 0.40%, to slip below the psychologically key level of 24,000, settling at 23,996.

Oil Surge, Geopolitics Weigh

Crude oil prices kept the markets boiling throughout as tensions in the Middle East refused to simmer down with concerns around supply disruptions keeping crude above $100 per barrel and raising fears of inflation for oil-importing economies like India.

Stalled U.S.-Iran negotiations fuelled geopolitical uncertainty and kept investors on edge globally, limiting any sustained recovery in local equities.

Financials Drag, Broader Markets Resilient

The slippage in benchmark indices was largely due to a selloff in banking and financial stocks, especially state banks, as rate-sensitive stocks suffered amid looming risks of rising inflation from elevated oil prices and the spillover effect on interest rates.

Broader markets showed resilience as midcap and smallcap indices held up better, rising 0.2% and 0.4% respectively, even as frontline indices fell.

Commodity Stocks Offer Support

Energy and commodity stocks came to the rescue, somewhat, with the sector providing some cushion to the decline. Upstream oil companies such as ONGC and Oil India saw gains as higher oil prices inspired their earnings outlook.

Metal stocks also witnessed buying interest amid hopes of steady demand.

Stock-Specific Reactions

Earnings season continued apace as stocks responded to report cards and commentary by the management. While some companies were rewarded for their results, others came in for severe punishment. Maruti Suzuki, for example, ended up among the top laggards as the car maker’s profit for the March quarter missed estimates amid a spike in costs. Axis Bank, HCL Technologies, and Shriram Finance, all of which have announced results in the recent past, also ended up on the losers list with their stocks still slumping from their report cards.

On the other hand, the top risers included ONGC, Coal India, Nestle, Adani Enterprises, and Reliance Industries, some of which have announced their earnings.

Outlook

Overall, Tuesday’s session reflected a cautious undertone in the market. While sectoral rotation and selective buying offered some support, rising crude prices and geopolitical risks remained dominant concerns.

Going ahead, oil price movements, global developments and earnings outcomes are likely to remain key drivers. With multiple cross-currents at play, markets may continue to trade with a negative bias in the near term, even as stock-specific opportunities persist.

Source:

• NSE
• BSE