Sensex, Nifty 50 fall for 4th consecutive session; investors lose ₹3 lakh crore in a day; oil prices hit $99 per barrel
AI Summary
The Indian stock market continued its downward trend for the fourth consecutive session, with the Sensex and Nifty 50 losing 0.47% and 0.53%, respectively, amid rising crude oil prices due to Middle East tensions. Investors have seen a significant decline in wealth, with over ₹4 lakh crore lost in four days as concerns grow over inflation and corporate earnings. The surge in Brent crude prices, nearing $100 per barrel, is contributing to market unease and a weakened rupee.
Stock market benchmarks, the Sensex and the Nifty 50, extended losses for the fourth consecutive session on Thursday, 23 July, amid spiking crude oil prices driven by the Middle East conflict.
The Sensex dropped 364 points, or 0.47%, to end at 76,391.39, while the Nifty 50 finished at 23,869.60, down 127 points, or 0.53%.
Broader markets underperformed as the Nifty Midcap 100 and Nifty Smallcap 100 indices plunged 1% each.
Investors lost over ₹3 lakh crore in a single day as the overall market capitalisation of BSE-listed firms dropped to below ₹477 lakh crore from ₹480 lakh crore in the previous session.
In these four sessions, the Sensex has crashed 1,760 points, or 2.3%, while the NSE counterpart has shed 465 points, or almost 2%.
Investors' wealth has declined by ₹4 lakh crore in these four days as the cumulative market capitalisation of firms listed on the BSE was ₹481 lakh crore last Friday (17 July).
The domestic market has been in the red due to a sustained rise in crude oil prices, raising concerns about a strain on India's fiscal position, an inflation flare-up, monetary tightening, and corporate earnings downgrades.
Rising for the fifth consecutive session, Brent crude September futures jumped 4% to trade near $99 per barrel when the Sensex closed.
Oil prices jumped on Thursday after Iran-backed Houthis said they hit two Saudi oil tankers in the Bab el-Mandeb strait in the Red Sea as part of a naval blockade on Saudi Arabia.
The attack on Saudi oil tankers raised fears that the disruption to oil supplies could soon spread beyond the Strait of Hormuz.
Higher oil prices have raised inflationary pressure and are dragging the Indian rupee down. Provisional figures showed the rupee declined 4 paise to settle at 96.57 per dollar on Thursday. The domestic currency is down more than 2% against the dollar so far this month.
The US military continued its strike on Iran for the 12th consecutive night after the breakdown of the MoU between the two sides, which had temporarily halted the hostilities that began on February 28.
Meanwhile, as per reports, Iran vowed on Thursday to keep striking the region so long as it remains under attack.
"With crude oil prices approaching the $100 per barrel amid concerns over further disruptions to global energy supplies, investor sentiment remained subdued as markets reassessed inflation risks and corporate margins," Vinod Nair, Head of Research, Geojit Investments, noted.
(This is a developing story. Please check back for fresh updates.)
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