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Rising Oil Prices Push Sensex, Nifty to Mid-June Lows
Indian stock markets fell again on Tuesday.
The Sensex and Nifty reached their lowest closing levels since mid-June.
Higher oil prices made investors worried because they can raise costs for companies and the country.
Ongoing geopolitical tensions also made the market uncertain.
Banks and financial companies were among the biggest losers.
However, mid-sized and smaller companies did slightly better.
Healthcare and pharmaceutical companies also performed relatively well.
The rupee weakened against the US dollar.
Experts said market swings could continue in the near term.
They suggested that investors consider defensive sectors and be careful with short-term decisions.
The Sensex fell 555.23 points, or 0.73%, to 75,577.58, while the Nifty declined 144.05 points, or 0.61%, to 23,635.10.
Both benchmark indices fell for a second consecutive session and closed at their lowest levels since mid-June.
Banking and financial stocks led the decline, with SBI Life Insurance Company, ICICI Bank and Axis Bank among the Nifty’s top losers.
Mid-cap and small-cap stocks gained 0.21% and 0.17%, respectively, while pharma and healthcare stocks outperformed.
Brent crude remained near $97 a barrel, while the rupee weakened 0.29% to 94.81 against the US dollar.
- Who
- Indian equity investors, banks and financial companies, and market experts.
- What
- The Sensex and Nifty extended their losses for a second consecutive session.
- Where
- Indian stock markets, including the Bombay Stock Exchange and National Stock Exchange.
- When
- Tuesday, September 8.
- Why
- Rising crude oil prices and continuing geopolitical uncertainty weakened investor sentiment.
Cautious, Large-Cap Approach
Selective Defensive Buying
Portfolio strategy
Cautious, Large-Cap Approach
One market expert said the recent outperformance of mid- and small-cap stocks may be difficult to sustain and favored large-cap stocks and non-equity exchange-traded funds.
Selective Defensive Buying
Another analyst said defensive and value-oriented areas such as healthcare, telecom, FMCG and IT could provide resilience.
Near-term market outlook
Cautious, Large-Cap Approach
Experts advised short-term investors to consider booking partial profits because elevated volatility may continue.
Selective Defensive Buying
Experts also said selective buying is likely to continue despite the market pressure.
Key facts
- Sensex close
- 75,577.58, down 555.23 points or 0.73%
- Nifty close
- 23,635.10, down 144.05 points or 0.61%
- Market breadth
- Nifty MidCap rose 0.21% and Nifty SmallCap rose 0.17%
- Weakest sectors
- Nifty Private Bank and Nifty Financial Services
- Outperforming sectors
- Nifty Pharma and Nifty Healthcare
- Brent crude
- Around $97 a barrel
- Indian rupee
- 94.81, down 0.29% against the US dollar
Quotes
A market expert
A market expert commenting on market strategy and portfolio allocation.
“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.”
thehansindia.com
“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.”
thehansindia.com
Sources
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