Indian stock markets ended lower on Tuesday, August 11, as rising crude oil prices and US-Iran tensions worried investors. The Sensex fell 388.19 points, or 0.49%, to 78,154.25, while the Nifty dropped 112.10 points, or 0.46%, to 24,471.70.
Selling increased across banking, cement, FMCG, metal and realty stocks as investors reduced risk during uncertain global conditions.
The main reason behind the share market fall today was a sharp rise in crude oil prices. Brent crude climbed above $89 per barrel as hopes for a US-Iran agreement weakened. Higher oil prices can increase India’s import bill and raise inflation concerns. Markets also watched developments around the Strait of Hormuz closely during the session.
Ponmudi R, CEO of Enrich Money, said markets could remain ‘headline-driven’ until greater clarity emerges.
Geopolitical uncertainty also kept investors cautious as Washington and Tehran continued to differ over the next steps. Any fresh development could quickly affect oil prices, currencies and global stock markets.
The Indian rupee also weakened to around Rs. 95.38 against the US dollar. A weaker rupee can make imported goods, including crude oil, more expensive for India. Weak Asian markets and negative US market signals added further pressure on domestic equities.
Financial stocks remained among the biggest losers during Tuesday’s session. Axis Bank, Bharti Airtel and Bajaj Finance declined, while cement, FMCG, metal and realty shares also slipped.
However, IT and pharma stocks offered some support. Nifty IT gained 0.53%, while Nifty Pharma advanced 0.43%. Investors now await inflation data from India and the US for fresh market direction.
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