Sensex falls 300 points, Nifty near 24,400 amid FII selling; crude oil, geopolitics weigh

Synopsis: Indian benchmark indices traded lower on Thursday as elevated crude oil prices, foreign fund outflows, rupee weakness and persistent geopolitical tensions weighed on investor sentiment. The Sensex and Nifty extended their decline amid continued uncertainty surrounding the Strait of Hormuz. The Sensex fell around 300 points while the Nifty slipped to 24,311 Key factors behind the market decline 1) Elevated crude oil prices: Brent crude was trading around $88.25 a barrel as uncertainty over the US-Iran standoff and the Strait of Hormuz continued to support oil prices. Higher crude prices remain a concern for India as they can increase the import burden and add pressure on inflation. 2) FII selling: Foreign institutional investors remained net sellers, offloading equities worth around ₹1,003 crore in the previous session. Continued foreign outflows have weighed on market sentiment and added pressure to domestic equities. 3) Rupee weakness: The Indian rupee weakened to around 95.40 against the US dollar, pressured by expensive crude oil and heightened geopolitical uncertainty. Currency weakness has further added to investor caution. 4) Geopolitical concerns: Ongoing tensions between the US and Iran and uncertainty surrounding the Strait of Hormuz continued to keep investors on edge. Any disruption to oil supplies or shipping through the key route could further increase crude prices and market volatility. Market outlook: Investors are likely to closely monitor crude oil movements, foreign fund flows, currency trends and developments in the Middle East for further market direction. Disclaimer: Investment in securities market are subject to market risks. Read all the related documents carefully before investing.