Photo of the Bombay Stock Exchange building, Wikimedia Commons, CC BY 2.0
Auto and IT stocks led a broader market decline as the Sensex shed 373.93 points, or 0.49%, to close at 76,570.35 on Tuesday.
The Nifty50 ended 141.35 points, or 0.59%, lower at 23,914.45, marking a third consecutive session of losses for the benchmarks.
Overnight strikes between the US and Iran fuelled concerns over oil supply disruptions from the Strait of Hormuz, pushing Brent crude 0.76% higher to $95.37 a barrel.
Nifty Auto fell 2% to lead the sectoral losses, with IT and Media also weak, while Oil and Gas, PSU Bank and Realty stocks held up better.
Eicher Motors, Wipro and Bajaj Auto were among the biggest drags on the Nifty50, as rising bond yields compounded the pressure on equities.
Nifty Auto was the worst-hit sectoral index, declining 2%, with Nifty IT and Nifty Media also underperforming during the session.
In contrast, Nifty Oil and Gas, PSU Bank and Realty indices outperformed, providing some counterbalance to the broader market decline.
Eicher Motors, Wipro and Bajaj Auto were among the top losers on the Nifty50 index during the session.
Broader markets also came under pressure, with the Nifty MidCap index ending 0.53% lower and the Nifty SmallCap index down 0.37%.
This marked the third straight session of losses for the benchmark indices, as rising bond yields further dented investor risk appetite.
Rising bond yields typically make fixed-income investments more attractive relative to equities, prompting some investors to shift allocations away from stocks.
Markets will be closely watching for further developments in the Middle East, given the direct link between regional tensions and global crude oil supply concerns.
The US and Iran exchanged strikes overnight, intensifying fears of further supply disruptions from the Strait of Hormuz, a key global oil shipping route.
Brent crude rose 0.76% to $95.37 per barrel during the session, adding to inflation concerns among investors.
Photo of the Bombay Stock Exchange building, Wikimedia Commons, CC BY 2.0
