Mumbai, Sep 15: Indian stock markets ended Tuesday on a weak note as investors turned cautious amid rising crude oil prices and growing concerns over the impact of higher energy costs on the economy and corporate earnings.
The sell-off gathered pace during the final hours of trading, pushing both benchmark indices sharply lower. The Sensex dropped 777.94 points, or 1.04 per cent, to close at 74,003.82, while the Nifty declined 279.50 points, or 1.19 per cent, to end at 23,118.60.
The decline was not limited to the frontline indices. Mid- and small-cap stocks faced even stronger selling, with the Nifty MidCap index falling 2.12 per cent and the Nifty SmallCap index slipping 2.43 per cent. The broader market weakness reflected a clear shift towards caution among investors.
Realty stocks were hit particularly hard during the session. The Nifty Realty index fell around 4 per cent, making it the worst-performing sectoral index. Chemical stocks also came under significant pressure, while metal shares witnessed heavy selling.
Among individual stocks, Bharat Electronics, Shriram Finance and IndiGo figured among the biggest losers on the Nifty.
The information technology sector, however, managed to buck the broader trend. The Nifty IT index gained around 2 per cent, making it the only major sectoral index to finish in positive territory.
The sharp fall also weakened the Nifty's technical position. The index moved decisively below the 23,300 level and is now nearing the psychologically important 23,000 mark. A sustained break below this level could lead to further pressure towards 22,800, while a recovery above 23,300 could provide some relief and bring the 23,300–23,500 range into focus.
Banking stocks also remained under pressure, with the Bank Nifty slipping below 56,000. The 55,500 level is now being watched closely as the next important support area.
The market's performance reflects growing investor sensitivity to the rise in crude oil prices. Higher oil costs can affect India's import bill, inflation outlook and the operating expenses of several industries, making energy prices an important factor for market sentiment.
With global uncertainties continuing to influence investor behaviour, market participants are likely to remain cautious in the near term. The coming sessions could see heightened volatility as investors track crude prices, global markets and developments that could influence corporate earnings and economic conditions.
