Mumbai, Sep 8 (IANS) Benchmark equity indices declined for the second consecutive session on Tuesday, ending at their lowest levels since mid-June, as rising oil prices amid persistent geopolitical tensions weighed on investor sentiment.
The 30-share Sensex fell 555.23 points, or 0.73 per cent, to close at 75,577.58. The broader Nifty declined 144.05 points, or 0.61 per cent, to settle at 23,635.10.
Banking and financial stocks were among the major drags on the benchmark indices. SBI Life Insurance Company, ICICI Bank and Axis Bank emerged as the top losers on the Nifty index, adding to the pressure on the headline indices.
Despite the weakness in the benchmark indices, broader markets remained relatively resilient. The Nifty MidCap index gained 0.21 per cent, while the Nifty SmallCap index advanced 0.17 per cent.
Among sectors, the Nifty Private Bank and Nifty Financial Services indices recorded the steepest declines. In contrast, the Nifty Pharma and Nifty Healthcare indices outperformed, providing some support to the broader market.
Market experts said that the continued rise in oil prices, coupled with geopolitical uncertainty, remained a key concern for investors and contributed to the cautious mood across the equity market.
“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, a greater focus on large-cap stocks and non-equity ETFs appears safer,” a market expert noted.
“Sector-wise, defensive and deep-value areas such as Healthcare, Telecom, FMCG, Diversified businesses, and IT can continue to provide an edge to the portfolio,” an analyst noted.
Market experts further said that 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.
Meanwhile, the Rupee traded weak at 94.81, down 0.29 per cent, as the dollar hovered near 98.95 and Brent crude remained elevated around $97.
–IANS
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