Nifty Ends 4-Day Rally as IT Stocks Drag Market Lower; Crude Oil Below $100

The domestic equity market witnessed a volatile session on Tuesday, September 22, as initial gains faded amid selling pressure in heavyweight IT stocks. The benchmark indices started the day on a positive note but failed to sustain higher levels amid profit booking after the recent recovery.

The Nifty 50 opened at 23,454.05 and touched an intraday high of 23,489 before reversing direction. Selling intensified during the later part of the session, dragging the index below the 23,400 mark and towards the day’s low of 23,285.75.

The Nifty 50 finally settled at 23,329, declining 85.30 points or 0.36%, snapping a four-session winning streak. The Sensex ended 329.91 points lower at 74,529.08. The Bank Nifty also remained under pressure, closing down 0.45%. Meanwhile, India VIX, the market’s volatility gauge, declined nearly 2.2% to around the 11 level. 

Sectoral Performance: Nifty IT Index Top Losers 

Only three out of the 11 major Nifty sectoral indices closed in positive territory.

The Nifty Media index emerged as the top performer, gaining 1.21% and extending its winning streak for the fifth consecutive session. Sun TV Network was among the key contributors, rising more than 7%.

In contrast, the Nifty IT index witnessed selling pressure and declined 0.86%, falling to a two-month low. Eight out of the ten constituents in the index ended the session in negative territory as investors remained cautious towards the sector.

The broader market also ended marginally lower, with the Nifty Midcap 100 index declining 0.08%, while the Nifty Smallcap 100 index slipped 0.23%.

Market Breadth Remains Weak

Market breadth remained slightly negative on the NSE. Out of 3,670 stocks traded during the session, 1,679 stocks advanced, 1,868 declined, while 123 remained unchanged.

A total of 115 stocks touched their 52-week highs, whereas 71 stocks recorded fresh 52-week lows. Meanwhile, 153 stocks hit their upper circuits and 86 stocks were locked in lower circuits.

Brent Crude Falls Below $100 Amid Supply Optimism

Crude oil prices extended their declining trend, with Brent crude slipping below the $100 per barrel mark for the first time in two weeks.

Brent crude prices fell for the fifth consecutive session as market participants assessed improving supply conditions.

Expectations of progress in diplomatic efforts surrounding the US-Iran situation raised hopes of additional crude availability in global markets.

Market sentiment also received support from reports suggesting stable crude shipments through the Strait of Hormuz and improved tanker availability at key Saudi Arabian export terminals. Brent crude declined around 1.5% to $98.8 per barrel.

Rupee Gains as Oil Prices Ease, RBI Action in Focus

The Indian rupee witnessed a volatile session, moving between gains and losses before closing stronger by 0.2% at ₹95.58 per US dollar on Tuesday.

The appreciation in the domestic currency was supported by the decline in crude oil prices and expectations of RBI intervention in the foreign exchange market. Traders remained cautious due to fluctuations in global oil prices and currency movements.

Market participants also tracked liquidity-related measures, including RBI bond sales and foreign exchange swaps, which continued to influence banking system liquidity conditions.

Global Markets Update: Europe Trades Higher, US Futures in Green

European markets traded higher on Tuesday, supported by positive investor sentiment across major regional indices.
Germany’s DAX gained 0.44% to 25,686.80, while the UK’s FTSE 100 advanced 0.17% to 10,756.87. France’s CAC 40 also remained firm, rising 0.49% to 8,178.94.

US equity futures indicated a positive start at Wall Street.  Dow Jones futures gained 114 points or 0.22% to 52,589, while S&P 500 futures edged higher by 4.75 points or 0.06% to 7,838.25. Nasdaq 100 futures were up 35.50 points or 0.12% at 30,820.25.