Sensex ends 242 points lower, Nifty below 22,800; Titan down 3%

The Sensex closed at 72,529.07, down 242.65 points or 0.33%, while the Nifty 50 ended at 22,716.20, lower by 64.05 points or 0.28%.Benchmark indices extended their losing streak on Tuesday as elevated crude oil prices, rising US Treasury yields and continued foreign investor selling kept risk appetite subdued. The absence of a clear de-escalation in the Middle East conflict added to concerns over inflation, growth and corporate earnings.The Sensex closed at 72,529.07, down 242.65 points or 0.33%, while the Nifty 50 ended at 22,716.20, lower by 64.05 points or 0.28%.The session was highly volatile, with the indicative closing level of the Nifty briefly plunging nearly 2.5% during the closing auction amid monthly derivatives expiry-related volatility.The benchmark indices have now fallen nearly 2% in the holiday-shortened week and around 6% over the past seven weeks, extending one of their longest losing runs in recent years.CRUDE OIL, US YIELDS KEEP PRESSURE ON MARKETSBrent crude futures hovered around $105 a barrel, keeping pressure on oil-importing economies such as India. Higher crude prices can add to inflation, widen the import bill and put pressure on economic growth and corporate margins.At the same time, the US 10-year Treasury yield climbed above 5.27%, hitting a 19-year high. Higher US yields make US assets relatively more attractive for global investors and can encourage foreign investors to reduce exposure to emerging markets."Domestic equities continue to face correction-led headwinds amid volatile crude prices, U.S. Treasury yields hovering near two-decade highs, and persistent FII outflows exerting pressure on the rupee," said Vinod Nair, Head of Research, Geojit Investments Limited.He added that the unprecedented pace of IPO fundraising was also absorbing incremental liquidity, while investor risk appetite remained subdued against a hawkish global backdrop and rising expectations of additional rate hikes later in the year.FII OUTFLOWS ADD TO PRESSUREForeign institutional investors sold Indian shares worth Rs 5,353 crore on Monday, their highest daily selling in four weeks. They have now sold a net $2.17 billion worth of Indian equities in September so far, after buying in the previous two months.Nitesh Arora, managing partner at Equirus Family Office, said rising US Treasury yields have increased the risk-free return available to global investors, making the premium offered by Indian equities relatively less attractive.The Nifty is down 5.7% so far in September, while MSCI's broadest index of Asia-Pacific stocks outside Japan has fallen around 1% over the same period.India's greater dependence on imported crude has also made the domestic market more sensitive to the rise in oil prices.BROADER MARKET, IT STOCKS ALSO FALLThe selling was broad-based, with 13 of the 16 major sectoral indices ending lower. The small-cap and mid-cap indices declined 0.8% and 1%, respectively.The Nifty Bank index fell 0.4%, while the Nifty IT index declined 1.5%, adding to the pressure on the broader market.Most Tata Group stocks also declined during the session amid uncertainty around the proposed listing of Tata Sons. Tata Chemicals fell 4.5%, while Tata Investment Corporation declined 2.9%.Nair said market focus is gradually shifting towards Q2 earnings, although expectations have already been tempered compared with the first quarter."While geopolitical tensions will continue to shape near-term sentiment, market focus is gradually shifting towards Q2 earnings, with expectations already tempered versus Q1," he said.He added that a meaningful de-escalation of the US-Iran conflict could trigger a sharp relief rally by improving risk sentiment. Until then, he said, investors are likely to remain selective and focus on fundamentals and earnings visibility.SEO KEYWORDSSensex today, Nifty today, stock market closing today, Sensex closing today, Nifty closing today, why is Sensex falling, why is Nifty falling, Indian stock market today, crude oil price today, US Treasury yield, FII selling India, foreign investor outflows, Tata Group stocks, Tata Chemicals share price, Nifty IT, Nifty Bank- Ends