Sensex, Nifty end lower for second session as crude prices, Hormuz uncertainty weigh

The Sensex and Nifty slipped for a second straight day on Wednesday, pressured by high crude oil prices and doubts about a possible agreement to reopen the Strait of Hormuz, which made investors wary.

The Sensex dropped 187.90 points, representing a 0.24% decline, finishing at 77,966.35, whereas the Nifty lost 35.75 points, or 0.15%, closing at 24,435.95.

Analysts noted that, after breaking below the 24,400 mark, the Nifty remains on a downward path, targeting the 24,250 level.

“On the downside, it found support near the 200‑hour SMA and then bounced back. On the daily chart, the index closed above the 20EMA,” said an analyst.

“If the Nifty stays under 24,400 on Thursday, it could slip toward 24,180. Conversely, 24,500 may serve as key resistance; a clear break above that could lift the outlook,” the expert added.

Investor mood stayed weak as worries about global energy supplies kept crude prices high, encouraging caution in stock markets.

Higher oil prices tend to hurt India, which imports most of its crude, because they can stoke inflation and expand the trade gap.

Within the Nifty basket, Tata Consultancy Services (TCS), Max Healthcare Institute and Apollo Hospitals Enterprise led the declines, pulling the benchmark lower.

Market breadth was mixed; the Nifty MidCap index rose 0.28%, beating the benchmark, whereas the Nifty SmallCap index fell 0.18%.

Sector performance diverged; the Nifty IT index fell 1.54%, the worst among sector gauges, as tech shares faced selling pressure.

Conversely, the Nifty PSU Bank index rose 2%, leading sectoral gains and curbing broader market losses.

“The upcoming U.S. inflation release is the main focus for investors, as its result will likely sway Fed policy expectations and, consequently, affect sentiment in global markets,” noted a market expert.