Mumbai (Maharashtra) [India], September 8 (ANI): Indian benchmark indices closed lower on Tuesday, weighed down by rising crude oil prices as Brent crude neared the USD 100 per barrel mark amid escalating tensions in West Asia and also weekly expiry of Nifty 50 index.
The BSE Sensex closed at 75,577.58, down 555.23 points, or 0.73 per cent, while the Nifty 50 index settled at 23,635.10, declining 144.05 points, or 0.61 per cent.
Investor sentiment remained cautious across Asian markets as higher crude oil prices raised concerns over their impact on inflation and corporate earnings.
Crude prices surged as Saudi Arabia's Energy Ministry stated that multiple energy facilities and installations in the southern province of the kingdom came under attack on Tuesday morning, leading to reported injuries.
Brent crude prices surged more than 2 per cent and were trading at around USD 99 per barrel at the time of reporting.
Vinod Nair, Head of Research, Geojit Investments Limited, said the sharp rally in mid- and small-cap stocks could become difficult to sustain as crude oil prices have breached USD 100 per barrel.
"Q1 results did point to improving corporate earnings, but sustaining this optimism may become challenging with crude oil prices breaching to USD 100 per barrel. While selective buying will remain, the ongoing elevated market volatility can persist in the near term, making it prudent for short-term investors to book partial profits," Nair said.
He added that the sharp outperformance of mid- and small-cap stocks over the past five to six months may be difficult to maintain going forward. From a strategic perspective, he said a greater focus on large-cap stocks and non-equity ETFs appears safer.
Nair also said defensive and deep-value areas such as Healthcare, Telecom, FMCG, Diversified businesses and IT can continue to provide an edge to portfolios.
Among NSE sectoral indices, Nifty Media surged 1.39 per cent, while Nifty Pharma gained 0.74 per cent and Nifty FMCG rose 0.40 per cent. Nifty Auto edged up 0.10 per cent.
On the other hand, Nifty IT declined 0.41 per cent, Nifty PSU Bank and Nifty Private Bank fell 0.22 per cent each, while Nifty Consumer Durables lost 0.19 per cent. Nifty Oil and Gas declined 0.77 per cent. Nifty Metal was down 0.01 per cent.
Gold prices also remained firm amid heightened uncertainty. At the time of reporting, 24-karat gold was trading at Rs 1,53,100 per 10 grams, while silver was trading flat at Rs 2,38,981 per kg.
Most major Asian markets also closed lower. Japan's Nikkei 225 declined 0.96 per cent to close at 65,779, Singapore's Straits Times fell 0.43 per cent to 5,767, Hong Kong's Hang Seng declined 0.54 per cent to 25,276, while South Korea's KOSPI closed 0.59 per cent lower at 6,954. (ANI)
Sensex closes 555 points down, Nifty loses 0.61% as Brent nears USD 100/ barrel
