Crude Surge And IT Drag Pull Markets Lower, Sensex slips 800 Points

Indian equity benchmark indices extended their losses for the third consecutive session on Friday, with sharp declines in early trade as elevated crude oil prices, continued foreign selling and weakness in IT stocks weighed on sentiment.

At around 10 am, the Sensex was down over 800 points or 1.03% at 76,894, while the Nifty 50 declined 227 points or 0.94% to trade below the 24,000 mark.

Market breadth remained weak, with 1,941 stocks declining against 1,133 advancing, indicating broad-based selling pressure across segments.

Crude Surge Keeps Markets Under Pressure

The sharp spike in crude oil prices continued to dominate market sentiment, with Brent crude trading above $106 per barrel and WTI crude nearing $97, marking a steep weekly gain of over 17%.

The surge comes amid escalating geopolitical tensions, stalled US-Iran negotiations and continued disruption in the Strait of Hormuz, raising concerns about global supply constraints.

US President Donald Trump maintained a hard stance on Iran, including naval actions in the region, further complicating prospects of a diplomatic resolution.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said markets are reacting to both negative developments and intermittent hopes of a resolution. He noted that clarity on the reopening of the Strait of Hormuz will be crucial for determining the medium-term market direction, as crude price volatility continues to influence sentiment.

IT Stocks Drag as Weak Guidance Weighs

Selling pressure was pronounced in IT stocks, with the Nifty IT index falling over 2.5% in early trade.

Shares of Infosys, Tata Consultancy Services and HCLTech were among the key laggards, as subdued guidance from major IT companies continued to weigh on investor sentiment.

Vijayakumar added that poor outlook from IT majors suggests that large-cap IT stocks may remain under pressure despite relatively attractive valuations.

FII Selling, Rupee Weakness Add to Concerns

Foreign portfolio investors have turned sellers again this week after a brief buying phase, adding to pressure on large-cap stocks.

The Indian rupee weakened further, opening 10 paise lower at ₹94.21 against the dollar, reflecting the impact of rising crude prices and capital outflows.

India VIX rose to around 18.87, indicating increased volatility and caution among investors.

Vijayakumar noted that continued FPI selling, along with elevated crude prices, has dragged the rupee lower and could keep large caps under pressure in the near term.

Broader markets also witnessed selling, with most sectoral indices trading lower. Apart from IT, other indices declined between 0.5% and 1%.

Among Nifty stocks, Coal India, Siemens Energy India, Tata Consumer Products, HDFC Asset Management Company and Apollo Hospitals were among the early gainers, while Adani Energy Solutions, Larsen & Toubro, Infosys, Adani Green Energy and BPCL were among the top laggards.

Despite the broader weakness, Vijayakumar highlighted that investors continue to show interest in growth-oriented stocks, particularly in the mid and smallcap space, where long-term prospects remain strong.