Indian stocks fall for sixth day as crude surge and higher US yields weigh on markets
Broad-based selling pushed Indian benchmarks to a sixth consecutive loss as surging crude oil and rising US bond yields triggered foreign outflow concerns and technical breakdowns.
The Nifty 50 dropped 132.75 points to close at 24,154.90 on Tuesday, marking its sixth straight session of declines. The broader Sensex fell 492.70 points to 77,235.46, extending its losing streak to three days amid intensifying late-session selling.
Geopolitical tensions are driving Brent crude past $91 a barrel after the US-Iran ceasefire expired and expectations for reopening the Strait of Hormuz diminished. Concurrently, higher US bond yields are keeping the rupee under pressure near 95.66 per dollar while discouraging foreign capital inflows. For investors, this confluence of energy risks and tighter global financial conditions signals a period of heightened volatility.
Market breadth reflected this caution, with 1,924 stocks declining against 1,558 advancers on the National Stock Exchange. Information technology led the sectoral retreat with a 1.93% drop, while realty and public sector banks also suffered. Conversely, auto and healthcare stocks managed selective gains as investors sought defensive positioning.
Technically, the Nifty 50 has breached key support between 24,250 and 24,300 and is now testing its 50-day moving average. Momentum indicators are softening, with the relative strength index slipping to 45 and the MACD signaling a bearish crossover. A decisive break below 24,000 could expose the index to further declines toward 23,800.
The Nifty Bank index mirrored this weakness, closing down 235.40 points at 57,262.40 after failing to hold a crucial moving average cluster between 57,440 and 57,470. A decisive break below the 57,000 support level could invite further selling toward 56,500, while a recovery requires reclaiming the 57,500 resistance zone.
Amid the broader weakness, analysts are highlighting specific defensive and growth opportunities. Data Patterns India Limited is recommended for purchase between ₹4,690 and ₹4,761, targeting ₹5,500 over the next few months, driven by its strong defense electronics order book and projected EBITDA margins of up to 40%.
Sumitomo Chemical India Limited is also flagged as a buy between ₹557 and ₹566, with a target of ₹635. The recommendation relies on its role as a manufacturing hub for its Japanese parent’s patented molecules and a strategic shift toward higher-margin specialty chemicals, despite risks from monsoon variability.
