Sensex, Nifty End Lower As Crude Rally, F&O Expiry Weigh On Dalal Street

Indian benchmark indices ended lower on Thursday, with the Nifty snapping its three-session winning streak, as a spike in crude oil prices following fresh comments by US President Donald Trump on Iran and the Strait of Hormuz weighed on investor sentiment. F&O expiry-related positioning further added to market volatility.

The Sensex fell 561.46 points (0.72%) to close at 77,054.94, while the Nifty 50 declined 158.95 points (0.66%) to settle at 24,052.05.

Among the Nifty constituents, HCL Technologies, Shriram Finance, HDFC Life, Tata Motors and Jio Financial Services were the top losers. Bharti Airtel, Apollo Hospitals, Sun Pharma, Cipla and Dr Reddy's Laboratories bucked the trend to end as the top gainers.

Crude Oil Rally, F&O Expiry Weigh On Sentiment

Markets remained under pressure after crude oil prices surged following comments by US President Donald Trump on charging ships using the Strait of Hormuz and reinstating a blockade of Iranian ports, raising concerns over global energy supplies and escalating geopolitical tensions in the Middle East.

Brent crude climbed above $86 a barrel for the first time in a month, while US WTI crude approached $80 a barrel, heightening concerns over India's import bill, inflation and corporate margins.

Expiry-related positioning in the weekly F&O contracts also contributed to heightened volatility during the trading session.

Asian markets mirrored the cautious mood. Japan's Nikkei 225 fell 1.17%, Topix declined 0.51%, South Korea's Kospi dropped 2.01%, while Kosdaq lost 1.8%. Australia's S&P/ASX 200 also traded lower.

Auto, Realty And Banks Lead Decline; Pharma Outperforms

Sectoral performance remained broadly weak, with Nifty Realty emerging as the biggest loser, falling 2%, followed by Nifty PSU Bank (-1.86%), Nifty Auto (-1.65%), Nifty Bank (-1.20%) and Nifty IT (-1%).

Among other sectors, Nifty Private Bank fell 0.91%, Oil & Gas declined 0.76%, FMCG slipped 0.62%, Media lost 0.45%, Infrastructure eased 0.41%, while Energy and Consumer Durables ended marginally lower.

Pharmaceutical stocks bucked the broader weakness, with the Nifty Pharma index gaining 1.02%, while the Nifty Metal index rose 0.60%.

The broader market also ended in the red, with the Nifty Midcap 100 falling 0.6% and the Nifty Smallcap 100 declining 1%.

Vinod Nair, Head of Research at Geojit Investments, said domestic equities came under renewed pressure as escalating West Asia tensions pushed crude prices sharply higher, reviving concerns over inflation, corporate earnings and imported costs after the rupee breached the 96-per-dollar mark. He added that auto, financial and realty stocks bore the brunt of the selloff, while pharma stocks attracted defensive buying. According to him, investors will closely monitor comments from the US Federal Reserve Chair along with the ongoing Q1 earnings season.

Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty remained range-bound after opening with a gap-down due to weekly options expiry but managed to hold above the key 50-day EMA, indicating underlying strength. He expects the index to remain positive as long as it stays above 23,950, with potential upside towards the 24,250-24,300 zone, while a break below 23,950 could trigger a phase of consolidation.

On the currency front, the rupee weakened sharply as higher crude prices and a stronger US dollar weighed on sentiment. Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, said the rupee declined around 0.55% to 96.20, with Brent crude above $86 significantly increasing pressure on India's import bill. He expects the rupee to trade in the 95.75-96.50 range in the near term, with crude prices, FII flows and global risk sentiment remaining the key drivers.