Sensex Retreats on Oil Concerns

India’s BSE Sensex fell about 0.5% to 78,187 on Tuesday, reversing gains from the previous session as rising crude oil prices weighed on investor sentiment and heightened concerns over inflation and corporate earnings. Brent crude climbed to a one-week high of $87.7 per barrel amid renewed geopolitical tensions and fading hopes of a near-term US-Iran agreement, raising concerns for oil-importing India. Among individual stocks, BSE remained in focus after the National Stock Exchange said the exchange operator would replace Wipro in the benchmark Nifty 50 index from September 30. Meanwhile, Adani Group stocks may gain after a US judge dismissed the fraud and bribery case against Gautam Adani while criticizing the Justice Department’s decision to drop the charges. Notable laggards included Bharat Forge (-2.2%), Himadri (-1.5%), Bajaj Finance (-1.1%), BSE Ltd (-1.0%), and Vedanta (-1.0%).

The SENSEX Index rose 43 points or 0.06 percent on Monday to close at 78542 points. Leading the gains are Titan Company (3.22%), Bajaj Finance (2.50%) and Tata Steel (1.38%). Top losers were Eternal Limited (-1.57%), ITC (-1.45%) and Nestle India (-0.99%).

India’s BSE Sensex fell about 0.2% to 78,348 on Monday, extending losses from the previous session as investors weighed rising oil prices against easing expectations for a near-term US Federal Reserve rate hike. Investor sentiment received some support from weaker-than-expected US jobs data, which reduced expectations of an imminent Fed Reserve rate hike. The positive global backdrop was partly offset by higher crude prices. Brent crude rose around $84.5 a barrel as uncertainty over the reopening of the Strait of Hormuz continued. Traders will also be watching how the new closing auction behaves as the market enters another week of trading. Among stocks, Titan will be in focus after a sharp rise in quarterly profit, while Dr. Reddy’s ended its distribution agreement with Novartis India. Oil India’s profit more than tripled, while Ola Electric narrowed its first-quarter loss. Top losers were State Bank of India (-1.6%), Kaynes (-1.5%), Cupid (-0.5%), and Hindalco (-0.5%).