Markets Extend Fall as Oil Above $100, Sensex Tanks 852 Points, Nifty Below 24,200

Indian equity benchmark indices ended lower for the second consecutive session on Thursday, weighed down by rising crude oil prices and persistent global uncertainty.

The BSE Sensex declined 852.49 points or 1.09% to close at 77,664, while the NSE Nifty50 fell 205.05 points or 0.84% to settle at 24,173.05, slipping below the 24,200 mark.

Market breadth remained negative, with 1,688 shares advancing against 2,409 declining, indicating broad-based selling pressure.

Oil Surge, Global Risks Drive Sell-off

The decline in markets was largely triggered by crude oil prices staying elevated above $100 per barrel, raising concerns over inflation and corporate margin pressure for India, a major oil importer.

Geopolitical tensions in West Asia, particularly developments around the Strait of Hormuz and stalled US-Iran negotiations, further dampened sentiment and kept investors cautious.

Vinod Nair, Head of Research at Geojit Investments, said domestic equities witnessed a broad-based decline as elevated crude prices and the impasse in US-Iran talks weighed on markets. He noted that the risk-off mood was intensified by weak global cues, continued FII outflows and a weakening rupee along with rising US bond yields.

Foreign institutional investors sold equities worth ₹2,078.36 crore in the previous session, adding to the pressure on indices.

Autos, Banks, IT Drag; Pharma Emerges Safe Haven

Sectoral performance remained largely negative, with auto, consumer durables and PSU Bank indices falling around 2% each. IT, realty, metal and private banks also declined about 1%, dragging the broader market.

Among Nifty stocks, Trent, Mahindra & Mahindra, Shriram Finance, SBI Life Insurance and Tech Mahindra were among the biggest losers.

On the other hand, defensive sectors outperformed, with healthcare rising 2.36% and media gaining 0.9%. Capital goods and energy indices also posted modest gains.

Stocks such as Dr Reddy's Laboratories, Cipla, Jio Financial, Adani Enterprises and Apollo Hospitals emerged as key gainers.

Nair added that while domestic PMI data indicated continued expansion in business activity, concerns around rising input costs, weaker export demand and declining forward visibility limited buying interest. He highlighted that pharma and healthcare stocks stood out as safe havens amid the broader selloff.

Broader Markets Under Pressure

The broader market also faced selling pressure, with the Nifty Midcap index declining 0.4% and the Smallcap index falling 0.6%, reflecting cautious sentiment across segments.

Meanwhile, the Ministry of Petroleum and Natural Gas clarified that there is no proposal under consideration to increase petrol and diesel prices, dismissing media reports as misleading.

Today's decline underscores the growing impact of elevated crude prices and geopolitical uncertainty on market sentiment. With inflation risks rising and foreign outflows continuing, markets are likely to remain volatile in the near term, even as defensive sectors attract selective buying interest.