Sensex Falls 555 Points, Nifty Slips 0.6% As Crude Prices Keep Markets Under Pressure

Indian benchmark indices ended sharply lower on Tuesday, as rising crude oil prices and concerns over an escalation in Middle East tensions weighed on investor sentiment.

The Sensex fell 555.23 points, or 0.73%, to 75,577.58, while the Nifty declined 144.05 points, or 0.61%, to 23,635.10.

Market breadth remained weak, with 2,025 shares advancing, 2,174 declining and 178 unchanged.

Financials, Auto Stocks Drag

Among Nifty 50 constituents, defence major Bharat Electronics was the top gainer, rising 1.57%. ONGC gained 1.32%, while Hindustan Unilever rose 1.14%. Adani Ports and Eicher Motors also advanced 1.04% and 0.73%, respectively.

On the losing side, ICICI Bank fell 1.98%, followed by Axis Bank at 1.67% and SBI Life Insurance at 1.54%. Reliance Industries and UltraTech Cement declined 1.43% and 1.23%, respectively.

Trent was the worst-performing Nifty stock, falling nearly 2%.

Automobile stocks also faced selling pressure, with Tata Motors Passenger Vehicles, Maruti Suzuki India and Mahindra & Mahindra declining more than 1 percent.

Broader Markets Remain Under Pressure

The broader market also ended lower. Mid-cap indices declined around 0.1-0.2%, while small-cap indices fell around 0.1%.

Among sectoral indices, Nifty Realty was the biggest laggard, falling nearly 1%, while Nifty IT declined 0.7%.

In contrast, Nifty Metal gained 0.4% and Nifty India Defence rose more than 1%.

Sentiment remained subdued as rising crude prices raised concerns over the impact of higher energy costs on the domestic economy, particularly amid risks of a widening Middle East conflict.

The rupee also weakened against the US dollar, ending 0.35 percent lower at ₹94.81, compared with its previous close of ₹94.48.

Mid, Smallcaps May Face Volatility

Vinod Nair, Head of Research at Geojit Investments, said mid- and small-cap stocks have delivered strong returns since their respective 52-week lows recorded in April and March.

“Since the 52-week lows recorded in April for mid-caps and March for small-caps, these segments have delivered strong returns of 20–30%,” Nair said.

He attributed the rally to recovering domestic inflows and value buying, as concerns around earnings downgrades triggered by the global economic slowdown, high inflation and geopolitical uncertainties eased.

While Q1 results indicated an improvement in corporate earnings, Nair cautioned that sustaining this optimism could become challenging if crude oil prices breach $100 per barrel.

He said selective buying could continue, but elevated market volatility may persist in the near term, making it prudent for short-term investors to book partial profits.

Nair also said the sharp outperformance of mid- and small-cap stocks over the past five to six months may be difficult to sustain.

“From a strategic perspective, a greater focus on large-cap stocks and non-equity ETFs appears safer,” he said.

Sector-wise, he expects defensive and deep-value segments such as Healthcare, Telecom, FMCG, diversified businesses and IT to continue providing an edge to portfolios.