Sensex, Nifty Extend Losses for Second Session as Crude Prices Weigh on Sentiment

The Sensex fell 242.65 points, or 0.33 per cent, to close at 72,529.07, while the Nifty declined 64.05 points, or 0.28 per cent, ending the session at 22,716.20.

The selling reflected a cautious approach among investors as higher energy prices raised concerns over input costs and the broader growth outlook. Weakness was visible across several sectors, keeping the benchmarks in negative territory through the session.

From a technical perspective, analysts said the Nifty continues to face resistance around the 22,750-22,800 range. Buying interest around the broader 23,500-23,600 zone has remained limited, restricting attempts at a sustained recovery.

On the downside, the 22,550-22,600 area is being viewed as an immediate support zone. A decisive move below 22,500, analysts said, could increase selling pressure and bring the 22,300-22,000 range into focus.

Large-cap stocks faced notable selling pressure, with Titan Company emerging as the biggest loser on the Nifty. Information technology stocks also dragged on the benchmark, with Wipro and HCLTech among the major decliners.

The weakness was more pronounced across the broader market. The Nifty MidCap index dropped 0.99 per cent, while the Nifty SmallCap index declined 0.81 per cent as investors reduced exposure to relatively higher-risk segments.

Sectoral performance was also largely negative. Consumer durables, chemicals, real estate and information technology stocks came under pressure amid concerns about global economic growth and the impact of higher crude prices on operating costs.

The Nifty Consumer Durables, Nifty Chemical, Nifty Realty and Nifty IT indices were among the weakest sectoral performers during the session.

Pharmaceutical stocks provided some support, however, with the Nifty Pharma index emerging as one of the better-performing sectoral gauges as investors sought relative stability amid widespread selling.

Market participants remained cautious as movements in energy prices and global bond yields continued to influence risk appetite. Analysts said investors were increasingly adopting a defensive approach while looking for sectors and companies with stronger fundamentals and clearer earnings visibility.

Geopolitical developments also remained a key factor for markets. Analysts said the trajectory of the US-Iran conflict could continue to influence near-term sentiment, while attention is gradually shifting towards second-quarter corporate earnings, with expectations more measured than during the previous quarter.

A meaningful easing of tensions between the US and Iran could improve global risk sentiment and provide relief to equities, analysts said. Until greater clarity emerges, investors are expected to remain selective rather than make broad-based bets across the market.

In the currency market, the rupee traded largely steady around 95.97 against the US dollar, gaining roughly 0.10 per cent. The currency received some support as crude oil prices retreated from recent highs following profit booking.

Analysts indicated a near-term trading range of 95.65 to 96.15 for the rupee as markets continued to track movements in crude prices and global risk sentiment.