The Indian stock market remained under pressure in Tuesday’s trade, September 8, as surging crude oil prices strengthened expectations that major global central banks, led by the US Federal Reserve, could consider raising interest rates to contain inflation.
The absence of fresh domestic triggers also kept investor sentiment weak, leaving equities vulnerable to continued selling.
Indian stock market today
The Nifty 50 fell another 0.61% to settle at 23,635, while the Sensex declined 0.73% to close at 75,577.
The broader markets, however, managed to recover from their intraday losses, with the Nifty Midcap 100 and Nifty Smallcap 100 ending 0.21% and 0.17% higher, respectively.
Sectoral performance remained mixed. Private banks, oil and gas, cement, and technology stocks closed lower, while media, pharma, chemicals, and FMCG stocks ended the session in positive territory.
In the commodities market, Brent crude futures climbed further to trade near $100 per barrel as geopolitical tensions escalated. Attacks on oil tankers and energy facilities have heightened concerns over potential supply disruptions and the possibility of a further tightening in global oil markets.
India is particularly vulnerable to rising crude prices as the country meets more than 80% of its crude oil requirements through imports. A sustained increase in oil prices could add to inflationary pressures and weigh on the rupee. If crude prices remain elevated for an extended period, higher input costs could also hurt companies’ profit margins.
Asian markets in red
Looking at the key Asian indices, Tokyo’s Nikkei 225 gave up early gains, sinking 1.7% to 65,269.33 as major exporters were sold due to a surge in the value of the Japanese yen. Shares in Toyota Motor Corp. shed 4.1%, while electronics maker Panasonic Holdings Corp. fell 5.8%.
South Korea’s Kospi fell back after an early rally, losing 0.6% to 6,954.52. Shares in Samsung Electronics handed back early gains to slip 0.2%.
Hong Kong’s Hang Seng lost 0.4% to 25,317.18, and the Shanghai Composite index edged 0.2% higher, to 3,940.55. China said its exports jumped 25% year-on-year in August, driven by strong demand for autos and high-tech items.
Nifty 50, Sensex face selling pressure: What happens next?
Shrikant Chouhan, Head Equity Research, Kotak Securities, said, “Today, the benchmark indices continued profit booking at higher levels. The Nifty ends 144 points lower, while the Sensex was down by 555 points. Among sectors, the Defense index outperformed, rallying 2.52 percent, whereas the Private Bank and Financial indices shed nearly 1 percent.”
“Technically, after a gap-down open, the market has been consistently facing selling pressure at higher levels. On daily charts, the market has formed a bearish candle, and on intraday charts, it is holding a lower top formation, which is largely negative,” Chouhan said.
For the near-term outlook, Chouhan said, “For day traders, 23750/75800 would act as an immediate resistance zone. Below this, a weak formation is likely to continue. On the downside, the market could retest the levels of 23500-23450/75200-75000.”
“On the flip side, if the index closes above 23750/75800, the pullback could extend till 23850-23900/76000-76300,” Chouhan said.
Asian markets technical outlook: Which levels could trigger the next move?
Vipin Kumar, AVP-Research at Globe Capital Market, said the KOSPI has been trading in a consolidation zone for the past month and a half.
“The situation was no different among its Asian peers; the KOSPI moved in line with the Dow Jones, trading in a consolidation zone for the past month and a half. A decisive close above the 7,220-spot level could lead the index toward 7,500, followed by 7,700 spot levels,” Kumar said.
On the Nikkei, Kumar said the index has been trading in a tight range of 63,770–66,955 for the past couple of weeks.
“The Nikkei index is also trading in a tight range (63,770–66,955) for the past couple of weeks, and a decisive break on either side of this range will set the tone for the next short-term directional move,” he said.
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