SENSEX, NIFTY50 fall for third straight session as crude tops $100 per barrel

The Indian equity benchmarks dropped for a third straight session on Wednesday, September 9, as investor sentiment turned negative after crude oil surpassed $100 per barrel, its highest level in six weeks, as intensifying conflict in the Middle East heightened concerns about oil flows from the region.

The SENSEX fell 813 points to close at 74,764 and NIFTY50 index dropped 204 points to close at 23,432.

Brent crude futures surged as much as 3.09% to hit an intraday high of $100.95 per barrel as attacks by Iran-backed Houthis on Saudi energy facilities earlier this week set oil installations ablaze, ​threatening a significant expansion of the conflict.

The attacks also threaten crude shipments via the Red Sea, which has been a key alternative route to the crucial Strait of Hormuz, where oil flows have been severely curtailed since the February 28 start of the Iran war, news agency Reuters reported.

Back home, selling pressure was broad based as all the 15 major sector gauges compiled by the National Stock Exchange (NSE), barring the measure of metal stocks, ended lower led by the NIFTY IT index's 3.24% fall. NIFTY Financial Services, Bank, FMCG, Pharma, PSU Bank, Private Bank, Realty and Consumer Durables indices also fell between 0.85% and 2.2%.

Broader markets also faced selling pressure as NIFTY Midcap 100 index declined 0.51% and NIFTY Smallcap 100 index fell 0.48%.

Among the individual shares, Coforge tumbled as much as 8.68% to ₹1,780 after O.P. Bhatt resigned as the company’s Non-Executive Independent Director and Chairperson with immediate effect on September 8.

The resignation followed concerns raised during an internal audit review of the board evaluation process, including the disclosure of certain material information relating to the Board Evaluation Report and the Chairperson’s performance.

Redington soared as much as 2.45% to hit an intraday and 52-week high of ₹382.70 ahead of Apple’s annual launch event, dubbed “Surprise and Shine”. Redington is Apple's official supply chain and distribution partner in India, the Middle East, Turkiye, and South Africa.

Graphite India rose as much as 18.5% to hit a 52-week high of ₹870 as global graphite electrode maker GrafTech International announced a minimum 30% price increase for all open commercial negotiations, effective immediately.

Infosys was top loser in the NIFTY50 index, the stock fell 4.34% to close at ₹1,035. HDFC Life, HCL Technologies, Tech Mahindra, Wipro, HDFC Bank, Tata Consultancy Services, Hindustan Unilever, Bharti Airtel, Cipla, Bajaj Finance and Tata Consumer Products also fell between 1.3% and 3.7%.

On the flip side, Adani Enterprises surged 5.13% to close at ₹3,105 after Adani Airport Holdings Limited (AAHL), a subsidiary of Adani Enterprises and one of India's largest private airport operators, has entered into binding agreements to raise ₹9,825 crore (nearly $1 billion) of primary equity capital from a consortium of investors.

It comprises Alpha Wave Global, Premji Invest, Temasek and BlackRock managed funds. The transaction values AAHL at a pre-money equity valuation of nearly $18 billion and represents one of the largest primary equity investments from financial institutions in India’s airport infrastructure sector.

Max Healthcare, Adani Ports, Coal India, Tata Steel, Hindalco, NTPC and JSW Steel were also among notable gainers in the NIFTY50 index.

The overall market breadth was negative as 2,092 shares ended lower while 1,484 closed higher on he NSE.