Brent at $95 a barrel deepened losses in Indian equities, with the Sensex falling 374 points. Import-heavy sectors led the decline, while FIIs bought Rs 1,143 crore in stocks.
Indian equities fell for a third consecutive session on Wednesday, tracking a global selloff driven by rising crude prices and renewed US-Iran tensions. The Sensex dropped 374 points, or 0.49%, to close at 76,570, while the Nifty slipped 141 points, or 0.59%, to 23,914.
Brent crude climbed 0.4% to $95.13 a barrel, extending a rally that has pushed the benchmark above $95 for the first time in months. The move deepened losses in import-heavy sectors such as paints and consumer goods, while energy-linked stocks found some support.
Among Sensex firms, Asian Paints, HDFC Bank, Mahindra & Mahindra, HCL Tech, Bharat Electronics and Infosys were the major laggards. Adani Ports, Bajaj Finserv, Power Grid, NTPC and Titan gained.
The selloff tracked a broad global decline. South Korea's Kospi tumbled 4%, and Japan's Nikkei dropped 2.85%. Shanghai's SSE Composite and Hong Kong's Hang Seng also ended lower. Markets in Europe traded in negative territory, while US markets closed lower on Tuesday.
Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said the slide was triggered by renewed US-Iran hostilities that reignited energy supply concerns and dashed hopes of an early reopening of the Strait of Hormuz. Rising crude prices and higher global bond yields continued to erode risk appetite, he said.
Foreign institutional investors bought equities worth Rs 1,143 crore on Tuesday, exchange data showed. The buying was not enough to offset selling pressure from domestic institutions.
The oil price rally also weighed on US refining margins. Marathon Petroleum (MPC), which has an Alpha Score of 61 out of 100, traded lower in sympathy with the broader market. MPC's score, labeled Moderate, reflects the company's exposure to crude price swings and refining margins.
The Reserve Bank of India faces a dilemma: higher oil prices feed inflation and widen the trade deficit, complicating any rate cut. The next MPC meeting is scheduled for April.
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