Sensex Halts Decline Amid Oil, Geopolitical Risks

India’s BSE Sensex traded nearly flat on Thursday, to around 74,732, halting a recent decline after falling to its lowest level in nearly three months. The market remained under pressure from escalating Middle East tensions, with Brent crude holding above $100 a barrel, raising concerns over India’s import bill, inflation, economic growth and corporate margins. The rupee weakened to around 95.10 per U.S. dollar on Wednesday despite intervention by the Reserve Bank of India. Energy stocks provided some support, with ONGC (+2.0%) and Oil India (+2.4%) advancing as higher crude prices boosted the outlook for upstream producers. Shakti Pumps (+10.4%) also jumped after securing a ?235.92 crore order to supply 10,000 solar pumps, while Axis Bank, Bajaj Finserv and Larsen & Toubro were among the early Sensex gainers. Investors remained cautious ahead of US inflation data and the Federal Reserve’s September policy meeting.

India's BSE Sensex extended early losses to close about 1.1% down at 74,764 on Wednesday, the lowest since June, marking the third session of decreases. The escalation of tensions between the US and Iran in the Persian Gulf region added to concerns about global energy supplies, pushing oil prices higher and fanning inflation concerns. Continued foreign fund outflows also weighed on investor sentiment. Selling pressure was seen across most sectors, led by IT, financials and FMGC stocks. HCLTech, Infosys, Tech Mahindra and TCS shed between 2% and 4.6%. Other laggards included HDFC Bank (-2.2%), ICICI Bank (-0.7%) and Reliance Industries (-1%). On the upside, Adani Ports outperformed, climbing 3.7%, after winning the bid to develop and operate two dry bulk berths at Paradip Port in Odisha. The project will lift domestic cargo capacity to 671 MMT, bringing it closer to its 1 billion-tonne 2030 target. Tata Steel (2.4%), Trent (1.1%) and NTPC (0.5%) also recorded gains.

The SENSEX Index dropped 813 points or 1.08 percent on Wednesday to close at 74764 points. Losses were led by Infosys (-4.55%), HCL Tech (-3.99%) and Tech Mahindra (-3.59%).