Indian benchmark equity indices ended sharply lower on Tuesday, with the Nifty 50 falling to a five-month low as elevated crude oil prices and rising global bond yields weighed on investor sentiment.
The Nifty 50 declined 279.50 points, or 1.19 per cent, to close at 23,118.60, while the BSE Sensex dropped 777.18 points, or 1.04 per cent, to settle at 74,003.82.
The sell-off was broad-based, with financial and automobile stocks among the major laggards. Mid-cap and small-cap indices also declined more than two per cent, reflecting heightened risk aversion among investors.
In contrast, information technology stocks offered some support, with the Nifty IT index gaining amid renewed optimism around the outlook for technology companies. HDFC Bank also advanced after the lender submitted nominations for its next chief executive to the Reserve Bank of India.
Market sentiment remained under pressure as Brent crude climbed above $107 a barrel amid continuing geopolitical tensions in West Asia. Higher oil prices have raised concerns over India’s inflation outlook and the country’s import bill.
Investors were also cautious ahead of the US Federal Reserve’s monetary policy decision, with the US 10-year Treasury yield moving above five per cent. Expectations of higher US interest rates have added to concerns over capital outflows and tighter financial conditions.
The Indian rupee also weakened against the US dollar, closing at 95.955, while foreign investors remained net sellers of Indian equities.
The sharp decline came after the benchmarks had opened higher in early trade, with IT stocks and HDFC Bank initially supporting the market. However, selling intensified as the session progressed, pushing both indices firmly into negative territory.
