Equity benchmark indices Sensex and Nifty ended lower for the second day on Tuesday as elevated crude oil prices triggered by uncertainty over the West Asia situation and foreign fund outflows weighed on investor sentiment.
The 30-share BSE Sensex dropped 242.65 points, or 0.33 per cent, to settle at 72,529.07. During the day, it slumped 707.72 points, or 0.97 per cent, to 72,064.
The 50-share NSE Nifty declined 64.05 points, or 0.28 per cent, to end at 22,716.20.
Brent crude, the global oil benchmark, dipped 0.09 per cent to USD 105.1 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,353.22 crore on Monday, according to exchange data.
“Domestic equities continue to face correction-led headwinds amid volatile crude prices, US Treasury yields hovering near two-decade highs, and persistent FII outflows exerting pressure on the rupee. Adding to the pressure, the unprecedented pace of IPO fundraising is absorbing incremental liquidity. Investor risk appetite remains subdued against a hawkish global backdrop amid rising odds of additional rate hikes later in the year,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.
