Markets fall as rising crude oil prices unnerve investors

Benchmark equity indices Sensex and Nifty closed lower on Wednesday as elevated crude oil prices amid a lack of a diplomatic resolution following the end of the US-Iran ceasefire dented investor sentiment.
The expiry of the temporary 60-day US-Iran ceasefire without any meaningful diplomatic breakthrough has renewed concerns over a prolonged disruption to energy supplies, driving crude oil prices higher, an expert said.
The 30-share BSE Sensex was down 325.78 points, or 0.42 per cent, to settle at 76,909.68, registering its fourth day of decline. During the day, it dropped 412.57 points, or 0.53 per cent, to 76,822.89.
In the last four days, the benchmark has lost 1,170.28 points, or 1.49 per cent.

Extending its losses to the seventh day, the 50-share NSE Nifty declined 76.60 points, or 0.32 per cent, to end at 24,078.30. It has tumbled 505.5 points, or 2 per cent, in the last seven sessions.
From the Sensex pack, Power Grid, Bajaj Finance, Larsen & Toubro, ITC, Hindustan Unilever and Reliance Industries were among the major laggards.

     HCL Tech, Eternal, Kotak Mahindra Bank and Sun Pharma were among the winners.

     Brent crude, the global oil benchmark, jumped 1.04 per cent to USD 91.97 per barrel.

     “Markets turned cautious ahead of the release of the US FOMC minutes, as investors remained concerned that the Federal Reserve’s battle against inflation may continue. The lack of a diplomatic resolution following the end of the US-Iran ceasefire kept crude oil prices and bond yields elevated, strengthening risk-off sentiment,” said Vinod Nair, Head of Research, Geojit Investments Ltd.