Nifty falls for 7th day, Sensex down 326 points as rising crude oil prices unnerve investors

Mumbai, Aug 19 (PTI) Benchmark equity indices Sensex and Nifty closed lower on Wednesday as elevated crude oil prices amid a lack of a diplomatic resolution following the end of the US-Iran ceasefire dented investor sentiment.

The expiry of the temporary 60-day US-Iran ceasefire without any meaningful diplomatic breakthrough has renewed concerns over a prolonged disruption to energy supplies, driving crude oil prices higher, an expert said.

The 30-share BSE Sensex was down 325.78 points, or 0.42 per cent, to settle at 76,909.68, registering its fourth day of decline. During the day, it dropped 412.57 points, or 0.53 per cent, to 76,822.89.

In the last four days, the benchmark has lost 1,170.28 points, or 1.49 per cent.

Extending its losses to the seventh day, the 50-share NSE Nifty declined 76.60 points, or 0.32 per cent, to end at 24,078.30. It has tumbled 505.5 points, or 2 per cent, in the last seven sessions.

From the Sensex pack, Power Grid, Bajaj Finance, Larsen & Toubro, ITC, Hindustan Unilever and Reliance Industries were among the major laggards.

HCL Tech, Eternal, Kotak Mahindra Bank and Sun Pharma were among the winners.

Brent crude, the global oil benchmark, jumped 1.04 per cent to USD 91.97 per barrel.

“Markets turned cautious ahead of the release of the US FOMC minutes, as investors remained concerned that the Federal Reserve’s battle against inflation may continue. The lack of a diplomatic resolution following the end of the US-Iran ceasefire kept crude oil prices and bond yields elevated, strengthening risk-off sentiment,” said Vinod Nair, Head of Research, Geojit Investments Ltd.

In Asian markets, South Korea’s Kospi tanked 5.80 per cent. Japan’s Nikkei 225 and Shanghai’s SSE Composite index also ended significantly lower, while Hong Kong’s Hang Seng index settled marginally higher.

Markets in Europe were trading in negative territory. US markets ended lower on Tuesday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 1,651.53 crore on Tuesday, according to exchange data.

On Tuesday, the Sensex was down 492.70 points, or 0.63 per cent, to settle at 77,235.46. The Nifty declined for the sixth day, sliding 132.75 points, or 0.55 per cent, to end at 24,154.90.