Indian stock markets extended their brutal decline for the fourth consecutive session this week, with Sensex tumbling 417 points or nearly 0.6% to close at 76,153 and Nifty 50 falling 41 points or 0.17% to end at 23,873. The latest session saw Sensex plunge 808.56 points or 1.05% intraday to 76,135.72, while Nifty 50 moved between a high of 23,914.45 and a low of 23,786.80. Out of 30-scrips on BSE, 26 stocks are trading in deep red while only 4 stocks are in green with limited gains. The BSE-listed companies market cap currently stands at ₹483.68 lakh crore, declining by ₹4.43 lakh crore in a single day from ₹488.11 lakh crore in the previous session. From August 31st to September 2nd, Sensex has nosedived by 1,128.79 points and Nifty 50 plummeted by 388.85 points, with cumulatively over ₹6.55 lakh crore wealth eroded in these four days. Broader markets also declined as the BSE SmallCap Select index dropped 0.61% and the MidCap Select index dipped 0.51%, while Asian Paints, HDFC Bank, Mahindra & Mahindra, HCL Tech, Bharat Electronics and Infosys were the major laggards. The Nifty opened nearly 200 points higher at 23,858 and touched an intraday low of 23,787 before recovering in the afternoon, with Bank Nifty ending 237.60 points, or 0.41% lower at 57,172. GIFT Nifty futures were at 24,094 points as of 8:00 a.m. IST, indicating a positive start for the Nifty 50 index, suggesting a potential rebound at Thursday's open after four consecutive sessions of losses.
Titan, Trent, ITC, Mahindra & Mahindra (M&M), Bajaj Finserv and HCL Technologies shares dropped around 2% each to lead losses on Sensex, while Tech Mahindra, Sun Pharma, TCS, UltraTech Cement, Bajaj Finance, Kotak Mahindra Bank, Maruti Suzuki, IndiGo and Hindustan Unilever (HUL) shares dropped more than 1% each. Axis Bank and Adani Ports shares gained nearly 1% each, bucking the broader trend. The selling pressure in auto stocks was part of the broader market weakness, dragged by weak global cues, as rising crude oil prices and surging bond yields dented risk-appetite. Selling was broad-based, with Auto, IT and Media declining between 1.2 per cent and 1.8 per cent, while Energy and oil and gas stocks gained amid higher crude prices. Nifty Midcaps and Small-Cap indices tumbled around 1% each, while Bank Nifty crashed over 421 points, with private banks taking the worst hit. Nifty Smallcap 100 jumped more than 1% while Nifty Midcap 100 index gained 0.4%, displaying resilience in the broader market despite benchmark weakness. Top gainers on Nifty were Adani Ports, Axis Bank, HDFC Bank, Bharat Electronics, Asian Paints, while losers were Tech Mahindra, Cipla, Bajaj Auto, Cipla and M&M.
Brent crude surged 1.57% to $97.13 per barrel on Thursday, intensifying inflation concerns as Brent traded at an elevated $96 per barrel, with markets assessing the impact of the renewed hostilities on energy supplies. The continued weakness in the domestic market came amid growing concerns that higher crude oil prices could put renewed pressure on inflation and corporate costs. Persistently high oil prices are a particular concern for India, a major crude importer, as they can worsen inflation and strain the current account. Domestic crude futures moved towards ₹8,600, with the US 10-year Treasury yield remaining near 4.79%. Oil prices advanced for a third consecutive session amid escalating hostilities between the US and Iran, raising concerns over further disruptions to energy flows from the Middle East. Iran mining the Strait of Hormuz and Ukrainian strikes on a Russian oil export terminal in the Baltic Sea represent the sharpest escalation of this conflict yet, as noted by Sarvam Goel, Founder of Pocketful. Vinod Nair, Head of Research at Geojit Investments, noted that "Stubbornly high crude oil prices continue to act as key overhangs for the domestic market" and that the market's recovery attempt lost steam as supportive global cues and renewed FII inflows collided with lingering geopolitical tensions and elevated global yields.
The Indian market decline mirrored a broader global selloff, with Asian markets under severe pressure as South Korea's Kospi tumbled 3.99% and Japan's Nikkei 225 index dropped 2.85%. Shanghai's SSE Composite index and Hong Kong's Hang Seng index also ended lower, while markets in Europe were trading in negative territory and U.S. markets ended lower on Tuesday. Foreign institutional investors (FIIs) bought equities worth ₹6,688 crore on Wednesday, according to NSE's provisional data, while domestic institutional investors purchased shares worth ₹2,813 crore. The global re-pricing of interest rate curves pushed US Treasury and European borrowing costs higher, with the benchmark US 10-year Treasury yield climbing to around 4.80%, while Japan's 10-year government bond yield approached 3%, adding to pressure on equity valuations. India VIX rose more than 5 per cent to 11.59, indicating higher market volatility. The markets opened higher amid positive global cues and softer crude oil prices, with the Nifty reclaiming the 24,000 mark in early trade. However, gains failed to sustain as the session progressed, with profit-taking dragging the index below 23,900 after the Closing Auction Session (CAS).
Despite the benchmark indices closing in red, market breadth turned positive with NSE seeing 2,208 advances against 1,313 declines, while 107 stocks remained unchanged. Broader markets sharply outperformed benchmarks, with Nifty Smallcap 100 jumping more than 1% while Nifty Midcap 100 index gained 0.4%. This positive breadth indicates selective buying interest in smaller companies despite the overall market weakness. Sectoral performance was largely negative, with Auto emerging as the worst performer after falling 1.68%, while IT tanked 1.17%. Focused IT (1.10%), Insurance (1.09%), Capital Goods (1.08%), Consumer Discretionary (0.86%) and Consumer Discretionary (0.86%) also closed lower, while Energy, Utilities, Power, Realty, Services, Housing Finance and PSU Bank were the winners. On the policy and diplomatic front, Japan's Credit Rating Agency upgraded India's sovereign rating to A- from BBB+, citing strong growth and improving fiscal metrics. India and Uzbekistan also elevated their relationship to a Comprehensive Strategic Partnership, with the two countries agreeing on a long-term uranium supply arrangement and a $5-billion bilateral trade target by 2030.
