Mumbai: Indian benchmark equity indices ended sharply lower on Thursday as investor sentiment weakened following concerns over a weaker-than-normal monsoon forecast and continued uncertainty surrounding the US-Iran situation.
The BSE Sensex fell 1,092.06 points, or 1.44%, to close at 74,775.74, while the Nifty50 declined 359.40 points, or 1.50%, to settle at 23,547.75.
Markets came under pressure after the India Meteorological Department projected monsoon rainfall at 90% of the Long Period Average (LPA), sparking fears of lower agricultural output and rising food inflation. Investors also remained cautious amid uncertainty over the possibility of a lasting diplomatic agreement between the United States and Iran.
Selling pressure was seen across broader markets as the Nifty Midcap 100 dropped 1.33% and the Nifty Smallcap 100 fell 0.85%. India VIX, often referred to as the market’s fear gauge, rose 8.02%, reflecting increased investor anxiety.
Among sectoral indices, Nifty Oil & Gas was the worst performer, declining 2.47%, followed by Nifty Metal, down 2.02%. Nifty Auto slipped 1.96%, while healthcare and consumer durable stocks also ended lower. The Nifty IT index was the only major sector to close in positive territory, supported by buying in technology shares.
Tech Mahindra, HCL Technologies and Larsen & Toubro were among the top gainers on the Sensex. On the other hand, Power Grid Corporation, IndiGo, NTPC, Mahindra & Mahindra and Tata Steel led the losses.
Despite the weakness in equities, the Indian rupee strengthened against the US dollar, ending at 95.00 and posting its biggest single-day gain since April 2.
Analysts said investor concerns were driven by fears of deficient rainfall and the possible impact on food inflation. Softer crude oil prices and easing bond yields, however, helped limit downside risks.
Brent crude declined 1.52% to $92.29 per barrel, while WTI crude fell 1.47% to $87.59 per barrel.
Disclaimer: This content is based on media reports and market data available at the time of reporting and is for informational purposes only. Investors are advised to consult a qualified financial expert before making any investment decisions. VisionMP is not responsible for any loss arising from the use of this information.
