The benchmark Nifty 50 fell 0.54% to 22,687.65, while the Sensex declined 0.62% to 73,249.39. Broader market indices also came under pressure, with the small-cap index dropping 1.1% and the mid-cap index falling 0.9%.
Other Asian markets slumped to levels near three-month lows after further Houthi attacks in Saudi Arabia heightened concerns about a broader escalation of the conflict and potential disruptions to oil supplies. Following the attacks, the United States ordered some diplomats and their family members to leave its missions in the kingdom.
Higher crude oil prices remained a key concern for Indian equities, given their potential impact on inflation and corporate profitability. Sanjeeb Hota, director and head of equity strategy at Standard Chartered India, said elevated crude prices were increasing price pressures across the economy while potentially weighing on corporate profit margins.
However, Hota noted that the decline could also reflect investors booking profits after the markets recorded strong gains last week, rather than a deterioration in earnings expectations.
Thirteen of the 16 major sectors recorded losses during Thursday's session. Information technology, energy and fast-moving consumer goods (FMCG) were the worst-performing sectors in percentage terms.
Among heavyweight stocks, HDFC Bank fell 1.8%, while Reliance Industries declined 2%, adding to the pressure on the benchmark indices.
Mahindra & Mahindra Financial Services dropped 3.3% after multiple brokerages highlighted rising funding costs and risks associated with insurance distribution reforms.
Consumer and healthcare-related stocks also faced selling pressure following notices from India's food safety regulator. Nestle India fell 2.8%, Abbott India declined 1.3%, and Zydus Wellness dropped 3.4%.
Abbott India said it had not been aware of the social media content cited by the regulator until it received the notice and did not endorse the claims. Nestle India said the notice reiterated earlier concerns regarding product labelling, to which the company had submitted a detailed response. Zydus Wellness did not respond to Reuters' request for comment.
Cybersecurity firm eMudhra suffered a particularly sharp decline, with its shares plunging 20% on Thursday. The fall took its losses over two sessions to 36%, following an advisory from the Indian Computer Emergency Response Team stating that some of the company's intermediate certificates had been compromised.
The combination of rising crude oil prices, escalating geopolitical tensions, broad-based sectoral losses and company-specific concerns kept Indian equities under pressure. With oil prices reaching $112 per barrel, investors remained focused on the potential implications for domestic inflation, corporate margins and market performance.
About The Author
.jpg)
Comment List