Markets closed sharply lower on Thursday as a surge in global crude oil prices, a rupee that slipped past the 95-per-dollar mark for the first time, and persistent foreign selling combined to rattle investor sentiment on the last trading day of April.
The BSE ended down 582.86 points, or 0.75 per cent, at 76,913.50, while the shed 180.10 points, or 0.74 per cent, to settle at 23,997.55. Both indices opened gap-down, with the Nifty hitting an intraday low of 23,796 before staging a 291-point recovery in the second half to close just below the 24,000 mark. The session coincided with the monthly Sensex expiry, keeping volatility elevated, with India VIX surging over 5 per cent during the day.
The sell-off was primarily triggered by crude oil prices spiking sharply, with Brent crossing $110 per barrel and WTI approaching the $105–106 zone, amid escalating US-Iran tensions and fears of supply disruptions through the Strait of Hormuz. Comments from Donald Trump rejecting Iran’s nuclear proposal, alongside reports of the US considering fresh military options, deepened risk aversion across global markets.
“The decline was primarily driven by a sharp surge in crude oil prices, which spiked to multi-year highs amid escalating geopolitical tensions in the Middle East… This raised fears of inflationary pressures and macroeconomic instability for oil-importing economies like India,” said Ajit Mishra, SVP Research at Religare Broking.
The Indian rupee hit a fresh record closing low, depreciating 6 paise to breach the 95-per-dollar mark, touching an intraday low of 95.322. The currency weakness was attributed to FII outflows, rising crude prices, and a hawkish US Federal Reserve maintaining its firm policy stance.
Gainers and losers
On the sectoral front, the damage was broad. Nifty Metal, PSU Banks, Realty, and FMCG were the steepest losers, each declining between 1 per cent and 2 per cent. Capital Goods and Consumer Durables also remained under pressure. IT and Pharma were the lone bright spots, with defensive buying supporting both indices through the session. Among individual stocks, Bajaj Auto, Sun Pharma, and Infosys led the Nifty gainers, while Eternal, Tata Motors’ passenger vehicle unit, and Hindalco were the top drags.
Broader markets did not escape the selling. The Nifty Midcap 100 fell 0.98 per cent and the Smallcap 100 declined 0.48 per cent, with the advance-decline ratio closing at 0.66, reflecting widespread profit-booking after recent sharp rallies in the mid and small-cap space.
In commodities, gold rose roughly 1.5 per cent to around $4,567 per ounce, while silver gained nearly 2 per cent to trade near $74.50 per ounce, as investors sought safe-haven assets amid geopolitical uncertainty. Crude oil at current levels continues to pose risks to India’s import bill and inflation trajectory.
Foreign institutional investors remained net sellers through the session, while domestic institutional investors offered partial support, limiting the downside. “FII outflows and higher crude prices continued to weigh on market sentiment,” noted Gaurav Garg of Lemonn Markets Desk.
Markets will be closed on Friday, May 1, on account of Maharashtra Day. Traders will return on Monday with US and Japan April Manufacturing PMI data in focus. Technically, Nifty’s immediate support lies at the 23,800 level, with resistance at 24,334 and 24,600. “A decisive move below 23,800 could trigger further downside towards the 23,500 level…On the upside, the 24,400–24,800 zone is likely to act as a strong resistance,” Mishra added. The near-term trajectory will hinge on how crude prices and the US-Iran situation evolve over the extended weekend.