Third day of declines for the Sensex and Nifty due to negative global trends and rising crude oil prices

Due to negative trends in the global markets and rising crude oil prices, the benchmark stock indexes, the Sensex and Nifty, declined for the third straight day on Friday.

Investor mood was also affected by the withdrawal of foreign funds as US bond rates rose and approached 5% for the first time since 2007.

To end the day at 65,397.62, the 30-share BSE Sensex dropped 231.62 points, or 0.35 percent. It fell 320.63 points, or 0.48 percent, to 65,308.61 during the trading day.

The Nifty dropped for a third day in a row, dropping 82.05 points or 0.42 percent to 19,542.65.

Due to selling pressure, the Sensex lost 1,030 points on Friday while the Nifty lost 268 points.

ITC, Tata Steel, Hindustan Unilever, State Bank of India, JSW Steel, and Power Grid were the Sensex companies that lagged behind the others the most.

The biggest winners were NTPC, Tata Consultancy Services, IndusInd Bank, and Kotak Mahindra Bank.

The tensions in West Asia contributed to the market’s concern, and the US Fed Chair’s emphasis on the need for further monetary tightening added to the market’s volatility, according to Vinod Nair, Head of Research at Geojit Financial Services.

While the domestic monetary climate and operational metrics of the firms would be impacted by rising oil prices and rising US bond rates.

Seoul, Tokyo, Shanghai, and Hong Kong all had negative closing prices on Asian markets. Market activity in Europe was negative. The US stock market declined on Thursday.

Benchmark Brent crude for all crude oil increased 1.14 percent to $93.40 a barrel.

“Intuitively, rising rates are bad for equities markets. If one were to account for risk premium and currency hedging with US government bonds yielding 5%, the ask rate for stocks would rise dramatically, according to Alok Agarwal, portfolio manager at Alchemy Capital Management.

Before reducing its gain to 4.98 percent, the yield on the 10-year Treasury reached 4.99 percent, up from 4.91 percent late on Wednesday. The 10-year Treasury yield was 4.94 percent early on Friday.

The price of Brent oil, the benchmark, increased $1.29 to $93.67 a barrel as worries about supply increased due to the intensifying violence between Hamas and Israel.

According to exchange statistics, foreign institutional investors (FIIs) sold stocks worth Rs 1,093.47 crore on Thursday.

The BSE benchmark decreased 247.78 points or 0.38 percent on Thursday to close at 65,629.24. To 19,624.70, the Nifty dropped 46.40 points, or 0.24 percent.