The Indian equity market continued its decline on Thursday, with both the Sensex and Nifty trading in the red during early trade. At around 9:30 a.m., the Sensex was down 97.96 points at 72,382.33, while the Nifty declined 53.71 points to 22,566.75.
Selling pressure was ber at the start of the session. The Sensex fell as much as 215 points to 72,257.30, while the Nifty declined 107.25 points to 22,518.90. Investors remained cautious amid global market uncertainty, rising crude oil prices and developments in commodity markets.
The Nifty’s 22,600 level remained a key level amid the ongoing decline in the equity market. According to market analysts, activity around this level could be important for the market’s direction. If the Nifty remains below 22,600 and weakness increases, additional selling pressure could emerge in the market.
Market direction will also depend on global market movements, crude oil prices, foreign investor activity and upcoming economic indicators. Volatility may therefore persist during the trading session.
A rise in crude oil prices also remained a factor for investors during Thursday’s trade. India depends on imports for a significant portion of its energy requirements. Higher crude oil prices in international markets can affect the country’s import bill, inflation and companies’ costs.
Amid the rise in crude oil prices, investors remained cautious about risk. Continued global uncertainty also affected market sentiment, with limited buying in equities and selling in select sectors.
Several major stocks also remained under pressure during early trade. Shares of Bajaj Auto and Max Health declined by around 3%.
The weakness in these stocks also affected broader market sentiment. However, the movement in a single trading session does not determine the overall market trend. Different sectors and companies can be affected differently based on their financial performance, valuations and business conditions.
Alongside weakness in the domestic equity market, the Indian rupee also declined slightly against the US dollar in early trade. The rupee fell 3 paise to 95.97 per dollar.
Crude oil prices and risk sentiment in global financial markets remained important factors for the direction of the rupee.
