Sensex, Nifty decline for second day as banking stocks drag markets

Indian equity benchmarks fell for a second straight session on Tuesday, with the Sensex down 555.23 points at 75,577.58 and the Nifty50 down 144.05 points at 23,635.10.

Banking stocks led the decline, with SBI Life Insurance Company, ICICI Bank and Axis Bank among the top losers on the Nifty50.

The fall follows Monday’s 382-point drop in the Sensex, which had been attributed to rising crude oil prices and escalating US-Iran tensions.

Broader markets bucked the trend, with the Nifty MidCap gaining 0.21 percent and the Nifty SmallCap gaining 0.17 percent.

Analysts said continued volatility in crude oil prices remained the key factor weighing on investor sentiment.

SBI Life Insurance Company, ICICI Bank and Axis Bank were among the top losers on the Nifty50 index during Tuesday’s session.

The broader markets showed a different pattern than the benchmark indices, with the Nifty MidCap rising 0.21 percent and the Nifty SmallCap rising 0.17 percent even as the Sensex and Nifty fell.

Rising crude oil prices directly affect India’s economy given the country’s heavy dependence on imported oil, which widens the trade deficit and pressures the rupee when prices climb.

TCS was among the IT stocks under pressure during Tuesday’s trade, as the sector remained sensitive to signals on US interest-rate policy.

The BSE Sensex and NSE Nifty are the two primary benchmark indices used to track the overall health of the Indian stock market, comprising the country’s largest listed companies by market capitalisation.

Foreign institutional investor selling has been a recurring theme in recent sessions, adding to the pressure from oil prices and geopolitical uncertainty.

Analysts have flagged continued volatility as long as Gulf tensions and crude oil supply concerns remain unresolved, with markets likely to stay reactive to fresh developments.

Deepa Jewellers was among the new listings debuting on the exchanges around the same period, drawing separate investor attention even as the benchmark indices declined.

National Stock Exchange building, Mumbai, Wikimedia Commons, CC BY-SA 4.0