Boiling oil forces markets to surrender early gains as Sensex falls 366 pts, Nifty below 16,500

Mumbai: Equity indices relinquished early gains to close in the red for the second straight session on Thursday as surging oil prices amid the ongoing conflict between Russia and Ukraine sapped risk appetite.

Crude oil prices ratcheted up towards the $120 per barrel mark on fears of supply disruptions as western nations tightened sanctions on Russia, which accounts for around 10 per cent of global oil output.

The 30-share BSE Sensex started the trade on a firm footing and jumped 527.72 points in morning deals to a high of 55,996.62. However, during the afternoon session it surrendered all its early gains and finished at 55,102.68, down 366.22 points or 0.66 per cent.

In similar fashion, the broader NSE Nifty declined 107.90 points or 0.65 per cent to close at 16,498.05.

UltraTech Cement was the biggest drag among the Sensex components, tumbling 6.47 per cent, followed by Asian Paints, Dr Reddy's Laboratories, Maruti Suzuki India, Hindustan Unilever Limited and ICICI Bank.

In contrast, PowerGrid, Wipro, Tech Mahindra, HCL Tech, ITC, Tata Steel and Infosys were among the prominent gainers, climbing as much as 3.34 per cent. The BSE midcap and smallcap indices ended on a mixed note.

International oil benchmark Brent crude surged 2.75 per cent to $116.03 per barrel.

The rupee declined by 14 paise to close at 75.94 against the US dollar on Thursday.