Dalal Street remained under heavy , with benchmark indices extending losses as rising crude oil prices, foreign investor selling and weakness in IT stocks rattled sentiment.
At around 11:21 am, the BSE Sensex was down 862.81 points, or 1.11%, at 76,801.19, while the Nifty 50 fell 245.65 points, or 1.02%, to 23,927.40.
Here are three factors that have kept Dalal Street under pressure.
The sharp decline comes as investors react to renewed tensions in West Asia, which have pushed global crude oil prices sharply higher this week. For India, which imports a large share of its crude needs, rising oil prices can hurt inflation, widen the trade deficit and squeeze corporate margins.
That combination often leads to caution on Dalal Street.
Market experts say traders are closely watching developments around the Hormuz Strait, a key global shipping route for oil supplies. Any disruption or prolonged uncertainty in the region can keep crude prices volatile and weigh on equity markets worldwide.
Adding to the pressure is renewed foreign portfolio investor (FPI) selling. Overseas investors had briefly turned buyers last week, but fresh outflows this week have again hit heavyweight stocks, especially large caps.
A weaker rupee has also added to concerns, as higher crude prices typically increase India’s import bill and can pressure the domestic currency further.
Technology shares were among the biggest drags on the market after cautious sector commentary and disappointing guidance from frontline companies.
Infosys fell sharply after weak growth guidance, while HCLTech, Tata Consultancy Services, Tech Mahindra and Wipro also traded lower.
The IT sector is particularly sensitive to global growth worries because a large part of its revenue comes from overseas clients in the US and Europe.
Banking and heavyweight names such as HDFC Bank, ICICI Bank and Reliance Industries also contributed to the Sensex fall.
Despite the sell-off in blue chips, selective buying was visible in parts of the broader market, especially in companies with strong growth visibility.
For now, traders are watching three things closely — crude oil prices, foreign fund flows and any easing of geopolitical tensions. Until there is more clarity, volatility is likely to remain the dominant theme on Dalal Street.