Markets extended their losing streak into a third straight session on Thursday, with investors caught in a familiar bind, a benign domestic inflation print on one hand, and a near-blocked Strait of Hormuz on the other. The Nifty 50 closed at 24,395.85, down 40.10 points or 0.16 per cent, while the Sensex managed a marginal gain of 0.15 per cent to end at 78,079, helped in part by weekly Sensex expiry-day choppiness.
“...the rebound lacked sustained momentum, resulting in a range-bound session,” noted Hitesh Tailor of Choice Equity Broking, capturing the mood of a market that tried to recover twice during the day and failed to hold either move.
The session was anything but dull beneath the surface. Traffic through the Strait of Hormuz has plunged 90 per cent, with Iran disputing US control claims and peace talks stalled, a development that market watchers say could reignite the energy price spiral India endured in July. Brent crude hovered around $87–89 a barrel, while WTI fell over 1 per cent to around $81.5 a barrel amid signs of softer demand. Domestic crude futures slipped nearly 2.5 per cent to below the ₹7,800 mark.
Meanwhile, India’s CPI inflation accelerated to 4.45 per cent in July from 4.4 per cent in June, the second consecutive month above the Reserve Bank of India’s 4 per cent medium-term target, driven by higher fuel and food costs linked in part to the shipping disruptions. WPI manufacturing inflation also rose sharply to 7.5 per cent in June. “...elevated crude oil prices remain a key overhang, with geopolitical uncertainty in the Middle East preventing a stronger risk-on move,” said Vinod Nair of Geojit Investments.
