19 August,2026 10:07 AM IST | Mumbai | mid-day online correspondent
Representational Image. File pic.
The domestic equity benchmark indices were trading in the negative territory in the initial trade on Wednesday as elevated crude oil prices at around USD 92 per barrel amid geopolitical uncertainties and higher US Treasury yields dented investor sentiment.
The 30-share BSE Sensex declined 229.32 points or 0.30 per cent at 77,006.14 in the initial trade. The 50-share NSE Nifty shed 81.10 points or 0.34 per cent at 24,073.80 during the early trade.
"We are of the view that, as long as the market is trading below 24,200/77300, a weak sentiment is likely to continue on the downside," Shrikant Chouhan, Head Equity Research, Kotak Securities said.
On Tuesday, the Sensex extended its losses for third straight day and plunged 492.70 points, or 0.63 per cent, to settle at 77,235.46, while the Nifty tumbled for the sixth straight day, declining 132.75 points, or 0.55 per cent, to end at 24,154.90.
According to Bajaj Broking Research the Nifty in the last 11 sessions is seen consolidating in a range with a corrective bias, while retracing 50 per cent of its previous seven sessions' sharp up move from 23,606 to 24,774.
Among the Sensex constituents, HCL Tech, Infosys, Eternal, Sun Pharma, Kotak Mahindra Bank and Eternal were the major gainers in the early trade. Tata Steel, Bharat Electronics, Bajaj Finance, Power Grid and Larsen & Toubro were among the laggards in the in initial trade.
"The ongoing mild weakness in the market is driven mainly by two factors: one, the rising crude prices, and two, appreciating bond yields globally. Crude prices have been responding to news from the Middle East for many months since the start of the war. Now, there is total uncertainty about the outcome of this conflict. Crude prices are rising anticipating the continuation of the uncertainty," VK Vijayakumar, Chief Investment Strategist, Geojit Investments said.
"Fears of rising inflation are pushing bond yields higher. The US 30-year yields are at their highest levels since 2007. This is not a favourable setting for the equity market. Bond yields are rising in Japan and Germany, too. Yet, the Indian market has not corrected sharply since the fundamentals are strong and getting stronger. The prospects for GDP growth and earnings growth for FY 27 are improving, and this along with abundant domestic liquidity is keeping the market resilient," he added.
According to news agency PTI, Brent crude, the global oil benchmark, was trading higher by 0.71 per cent at USD 91.67 per barrel in futures trade, while foreign institutional investors (FIIs) purchased equities worth Rs 1,651.53 crore on a net basis on Tuesday.
(With inputs from PTI)
