Mumbai, Sep 1: Indian stock markets ended slightly lower on Tuesday, extending their decline for a second consecutive session as rising crude oil prices and selling in banking, auto and other key sectors kept investors cautious.
The Sensex closed 13 points lower at 76,944, while the Nifty 50 slipped 25 points to 24,056. The benchmarks remained volatile throughout the session as investors weighed global uncertainty and rising energy costs.
Banking and automobile stocks were among the main drags, while broader market sentiment was also affected by weakness in several other sectors. The rise in crude prices added to concerns about inflation and corporate costs, particularly for an oil-importing economy such as India.
Brent crude moved above $92 a barrel amid renewed tensions in the Middle East, raising fears of possible disruptions to oil supplies through the Strait of Hormuz. Higher oil prices could increase India’s import bill and put pressure on inflation if the trend continues.
Global bond yields also remained elevated, adding to investor caution. Higher yields can make fixed-income investments more attractive and increase borrowing costs, creating additional pressure on equity markets.
Despite the weak session, India’s economic outlook remains relatively supportive. Strong domestic growth and resilient business activity continue to provide a cushion, although external risks are making investors more selective.
Market participants are now closely watching crude oil prices, geopolitical developments, global interest-rate expectations and foreign investment flows for the next market direction.
With uncertainty still high, analysts expect volatility to remain elevated in the near term. A sustained moderation in oil prices and improvement in global sentiment could support a recovery, while further geopolitical escalation could keep pressure on Indian equities.