Crude Shock, Global Jitters Pull Markets Lower Despite Strong April Rally

Indian equity benchmark indices ended on a weak note on Thursday, as rising crude oil prices and global uncertainty continued to weigh on investor sentiment.

The BSE Sensex declined 582 points to settle at 76,913, while the NSE Nifty50 fell 180 points to close at 23,997, slipping below the 24,000 mark.

Market breadth remained negative, with 1,976 stocks declining against 1,295 advancing on the NSE, indicating broad-based selling pressure.

Oil Above $120, Global Risks Drive Weakness

The decline came amid a sharp spike in crude oil prices, with Brent crossing $120 per barrel for the first time in four years due to escalating US-Iran tensions and disruptions in key shipping routes.

Vinod Nair, Head of Research at Geojit Investments, said global sentiment deteriorated sharply as geopolitical tensions intensified and maritime disruptions continued. He noted that elevated oil prices have heightened inflation concerns and weighed on global risk assets.

He added that in India, rising crude prices pressured the rupee and revived concerns over capital outflows and widening deficits, given the country’s dependence on oil imports.

The Indian rupee weakened slightly, ending at ₹94.90 per dollar.

Autos, Banks, Metals Drag; IT Shows Resilience

Sectorally, most indices ended in the red, with the metal index declining around 2%, while PSU banks, private banks, consumer durables and realty fell about 1% each.

Among Nifty stocks, Tata Motors Passenger Vehicles, Hindalco Industries, Eternal, Hindustan Unilever and Axis Bank were among the top losers. On the other hand, Bajaj Auto, Sun Pharma, Infosys, Tech Mahindra and Bajaj Finance were among the key gainers.

Nair highlighted that autos, banks, metals and real estate led the decline, while IT and pharma witnessed selective buying as defensive plays.

Broader markets also remained under pressure, with the Nifty Midcap index falling 1% and the Smallcap index declining 0.5%.

Technical Signals Point To Consolidation With Buying At Lower Levels

The market also showed signs of consolidation with strong buying emerging at lower levels. As highlighted by Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, the Nifty saw a sharp V-shaped recovery after slipping to an intraday low of 23,797, eventually closing back above the key 24,000 mark.

He noted that the index continues to consolidate within a tight range, with 24,300 acting as resistance and 23,800 providing support, suggesting that a decisive breakout will determine the next directional move. The recovery from lower levels, along with resilience in broader markets, indicates continued buying interest despite near-term volatility.

Sectorally, IT emerged as the top gainer, while metals and realty lagged, reflecting a mixed undertone within the broader market.

April Rally Remains Strong Despite Recent Weakness

Despite the recent correction, markets delivered strong gains for the month. The Sensex and Nifty rose over 7.4% in April, marking their biggest monthly gain since December 2023 and the strongest April performance since 2020.

Flows into domestic investment products also remained robust. Exchange traded funds saw record inflows of over ₹1.8 lakh crore in FY26, led by strong demand for commodity ETFs.

Gold and silver ETFs accounted for more than half of total inflows, supported by global uncertainty and rising bullion prices. Gold prices rose over 1% to around ₹1.5 lakh per 10 grams.