Mumbai, Aug 11: Indian equity markets ended lower on Tuesday as rising crude oil prices and uncertainty surrounding developments in the Middle East made investors more cautious.
The Sensex fell 388 points, or 0.49 per cent, to close at 78,154.25, while the Nifty 50 declined 112 points, or 0.46 per cent, to settle at 24,471.70.
The market weakness came amid renewed concerns over higher energy prices. Crude oil prices climbed more than 2 per cent and moved close to $90 a barrel, raising worries that a prolonged increase in fuel costs could put pressure on inflation and corporate earnings.
Investors also remained cautious amid uncertainty over the reopening of the Strait of Hormuz and developments linked to a possible US-Iran understanding. Any disruption in the strategically important shipping route could have wider implications for global energy supplies.
The decline was broad but relatively moderate across the market. The Nifty Midcap 100 slipped 0.02 per cent, while the Nifty Smallcap 100 managed to gain 0.22 per cent.
Among major Sensex constituents, Bharti Airtel, Axis Bank and HDFC Bank were among the key stocks weighing on the benchmark.
The market movement reflects growing sensitivity to global developments, particularly oil prices. India imports a significant share of its crude oil requirements, making sustained increases in international oil prices an important factor for inflation, the rupee, corporate costs and overall investor sentiment.
For investors, the session highlighted the continued uncertainty facing global markets as geopolitical developments influence commodity prices and financial markets.
Despite Tuesday’s decline, the broader market remained relatively resilient, with gains in small-cap stocks indicating that investor interest in selected domestic opportunities remained intact.
Market participants are now likely to closely track crude oil prices, geopolitical developments and upcoming economic indicators for further direction.