It was the index’s worst six-session run in recent weeks, with the Nifty declining 1.7 per cent over the period.
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Markets extended their losing streak to a sixth consecutive session on Tuesday, with crude oil prices crossing $91 a barrel and fading hopes of a West Asia resolution keeping investors firmly on the sidelines.
The Nifty 50 settled at 24,154.90, down 132.75 points or 0.55 per cent, breaching the 24,200 support level that had held for most of the past week. The Sensex closed at 77,235.46, shedding around 0.6 per cent. It was the index’s worst six-session run in recent weeks, with the Nifty declining 1.7 per cent over the period.
The expiry of a temporary US-Iran ceasefire, with Iran hardening its stance and Washington ruling out an extension, pushed Brent crude above $91, a development that rattled markets already on edge over inflation and foreign outflows. “Investor anxiety increased as hopes for a West Asia resolution faded following the expiration of the temporary US-Iran ceasefire, heightening concerns about renewed inflation,” said Vinod Nair, Head of Research at Geojit Investments.
Foreign institutional investors continued to pull money out, selling equities worth ₹2,535 crore on Monday alone, their heaviest selling in three weeks. The pressure was compounded by the US 10-year Treasury yield holding around 4.73 per cent, which made dollar assets more attractive relative to emerging markets like India. The rupee weakened 0.15 per cent to around ₹95.68-95.7 to the dollar, with the Reserve Bank of India intervening to limit further depreciation. Dr. V K Vijayakumar of Geojit noted that the spike in US bond yields was “slightly negative for the rupee” as FIIs shift money toward risk-free US returns.
Sectorally, IT bore the brunt of the sell-off, with the Nifty IT index declining nearly 2 per cent for the third straight session. Realty, PSU Banks and FMCG also faced sustained selling pressure. Healthcare, Auto and Media bucked the trend, ending in positive territory. Broader markets showed relative resilience, the Nifty Smallcap 100 ended broadly flat even as the Nifty Midcap 100 slipped 0.43 per cent.
On the macro front, WTI crude climbed to around $84 a barrel while domestic crude futures traded above ₹8,000. Rising energy costs have renewed concerns over India’s current account deficit and import bill, even as the June quarter earnings season showed resilient corporate profit growth.
On a structural note, the government approved 31 new investment proposals worth ₹7,877 crore under the Electronics Component Manufacturing Scheme, taking total approved investments to ₹69,548 crore, above the scheme’s original ₹59,350 crore target.
Looking ahead, analysts see limited near-term relief. “Elevated crude prices, geopolitical uncertainty and foreign selling are likely to keep near-term sentiment subdued,” said Siddhartha Khemka of Motilal Oswal, adding that resilient domestic fundamentals and policy support could offer a “constructive medium-term backdrop.” Ajit Mishra of Religare Broking flagged 24,000 and then 23,800 as the next support levels on the downside, while cautioning that 24,250 would be the first hurdle on any recovery.
Published on August 18, 2026