Sensex ends nearly 500 points lower, Nifty around 24,150: 7 key factors behind market fall

Indian benchmark indices extended their losing streak on Tuesday as rising crude prices and heightened West Asia tensions weighed on investor sentiment. The Nifty closed lower for the sixth consecutive session at 24,154.90, while the Sensex settled nearly 500 points lower at 77,235.46. Most sectoral indices ended in the red, with Pharma and Oil & Gas emerging as exceptions. Midcap and Smallcap indices also closed lower. 7 key factors behind the market decline 1. Crude oil surge: Brent crude climbed above $91 a barrel amid renewed concerns over Iran-US tensions, raising fears of potential supply disruptions. Higher oil prices could also intensify inflationary pressures in India. 2. Weak global signals: Asian markets traded lower, while US equities ended Monday’s session in negative territory. Weakness in global markets further dampened domestic sentiment. 3. FII selling: Foreign institutional investors sold Indian equities worth ₹2,535.10 crore on Monday, marking their strongest selling activity in three weeks and adding to market pressure. 4. Higher US bond yields: The US 10-year Treasury yield rose to around 4.73%, making US assets relatively more attractive and potentially limiting foreign flows into emerging markets. 5. West Asia tensions: Renewed uncertainty over Iran-US developments and fading hopes of a fresh agreement heightened risk aversion among investors. 6. Weak market breadth: Selling pressure remained broad-based, with most major sectoral gauges ending lower and limiting the scope for a meaningful recovery. 7. Cautious investor sentiment: Persistent selling, elevated crude prices, global weakness and geopolitical uncertainty kept investors defensive, extending the market’s decline. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.