Global cues weigh on Dalal Street as oil spike fuels investor worries

Synopsis

Indian stock markets declined nearly 1% on Thursday, mirroring losses in Asian benchmarks as Brent oil prices surpassed $100, fueling cautious sentiment. Analysts anticipate range-bound trading until strong market triggers emerge, with the Nifty closing at 24,173.05 and Sensex at 77,664.

Mumbai: India's key stock gauges declined nearly 1% on Thursday, tracking losses seen in other Asian benchmarks after Brent oil prices inched above $100 again, driving up cautious sentiment among participants. Analysts said indices are likely to remain range-bound in the coming days until strong triggers emerge.

NSE's Nifty fell 205.05 points or 0.8%, to close at 24,173.05 on Thursday. BSE's Sensex declined 852.49 points, or 1.1%, to end at 77,664.

Elsewhere in Asia, Japan dropped 0.8%, China declined 0.3%, Hong Kong fell 1%, and Taiwan was down 0.4%, while South Korea gained 0.9%. The pan-Europe index Stoxx 600 was down 0.5% at the time of going to print.

Agencies

Profit booking seen Some unwinding in heavyweight stocks ahead of earnings may have hit sentiment l Nifty likely to consolidate in 23,700-24,500 range: Analysts

"Markets are witnessing profit booking at higher levels following the recent 10% rally in indices. Elevated crude prices above $100 remain a key concern for India, while the ongoing West Asia conflict continues to lack clarity around resolution," said Aamar Deo Singh, senior vice-president - research, Angel One.

Singh also said some unwinding in heavyweight stocks ahead of earnings has weighed on sentiment. RIL is set to announce its fourth quarter numbers on Friday.

India's Volatility Index, or VIX , gained 1.6% to 18.6 levels, indicating some caution among traders. The measure is up over 102% since the start of this year.

Chandan Taparia, head - Derivatives & Technicals at Motilal Oswal Financial Services, said markets had entered deeply oversold territory in recent weeks, triggering short covering that has helped the index retrace nearly 50% of its recent decline. "However, in the absence of strong catalysts, the index is likely to consolidate within the 23,700-24,500 range," he said.

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