Benchmark stock market indices ended sharply lower on Thursday, as rising crude oil prices and escalating tensions in West Asia weighed heavily on investor sentiment.
The BSE closed at 76,681.29, down 982.71 points or 1.27%, while the NSE Nifty 50 settled at 23,897.95, falling 275.10 points or 1.14%.
The sell-off was broad-based, with most sectoral indices ending in the red. IT stocks led the decline, with heavyweights such as Infosys, HCLTech, TCS and Tech Mahindra seeing steep losses. Infosys dropped over 7%, while HCLTech and TCS also saw significant cuts.
Market sentiment remained under pressure as Brent crude surged above $107 per barrel, while WTI crude hovered near $98. The sharp rise in oil prices, driven by geopolitical tensions and concerns around supply disruptions, raised fears of inflation and higher input costs.
Higher oil prices are particularly negative for India, which relies heavily on imports, and can impact both corporate margins and macro stability.
Apart from IT, selling pressure was visible across sectors. Banking and financial stocks declined, with ICICI Bank, HDFC Bank and Axis Bank ending lower.
Auto, FMCG and metal stocks also saw weakness. Midcap and smallcap indices underperformed, with Nifty Midcap 100 falling nearly 1% and Nifty Smallcap 100 down around 0.87%.
Volatility spiked, with India VIX rising over 6% to 19.71, reflecting growing nervousness among investors.
Among the few gainers on the Sensex pack were Trent, Bajaj Finance, SBI and HDFC Bank, which showed some resilience. However, the majority of stocks ended in the red.
Vinod Nair, Head of Research at Geojit Investments Limited, said the market extended its profit-booking streak.
“Market extended its profit-booking streak, pressured by heightening geopolitical tensions in West Asia, a sharp rally in prices, and a weakening rupee.
IT stocks led the decline following disappointing quarterly earnings, while selling pressure was broad-based across sectors. FIIs returned to net selling again after a brief spell of inflows. Sentiment was further dented by global rating agencies downgrading India on inflation and macro concerns, along with the RBI flagging early signs of slowing growth,” he said.
While valuations have corrected after the recent fall, investors are likely to remain cautious.
Market participants will closely track crude oil prices, geopolitical developments, and ongoing earnings for signs of any downgrade in corporate outlook.
With global uncertainties still high, volatility is expected to persist in the near term.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)