Indian stock markets closed lower on Tuesday as rising crude oil prices, weak banking shares and cautious global cues hurt investor sentiment after the previous session’s rally.
The BSE Sensex dropped 417 points to close at 76,887, while the Nifty 50 fell 97 points to end at 23,996, slipping below the important 24,000 mark.
Markets opened weak and remained under pressure through most of the session, with traders turning cautious amid renewed concerns over the impact of higher oil prices on inflation and economic growth.
Brent crude prices remained elevated above $110 per barrel, raising worries for India, which imports a large share of its energy needs. Higher crude prices can increase fuel costs, pressure the rupee and affect corporate margins.
Banking stocks were among the biggest drags on the indices. Investors booked profits in lenders after recent gains and remained selective ahead of more earnings announcements.
Among the top losers were Axis Bank, which declined sharply, followed by HCL Tech, ICICI Bank and Kotak Mahindra Bank. Weakness in financial and IT shares weighed heavily on benchmark indices.
On the other hand, energy and commodity stocks attracted buying interest. ONGC, Coal India, Oil India and NTPC were among the key gainers as investors bet that firmer commodity prices could support earnings in those sectors.
The broader market was relatively steady compared with benchmark indices. Several midcap and smallcap stocks ended with modest gains, showing that investors continue to buy selectively despite headline weakness.
Market analysts said the current mood remains mixed. Domestic corporate earnings have been supportive in some sectors, but global uncertainty and volatile crude prices are keeping traders on edge.
The rupee also traded weak against the US dollar, adding another layer of caution for foreign investors.
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