Sensex drops nearly 800 points as crude oil nears $105 per barrel
Rupee hits record low amid Iran-US tensions and heavy FII selling
IT stocks lead market decline while volatility rises ahead of inflation data
Benchmark equity indices extended losses on Tuesday morning, with the BSE Sensex falling nearly 800 points and the NSE Nifty slipping below the 23,650 mark as surging crude oil prices, a record-low rupee and escalating geopolitical tensions triggered broad-based selling across sectors.
As of 11 am, the Sensex was trading at 75,226.99, down 787.87 points or 1.04%, while the Nifty50 declined around 200 points or 0.84% to 23,615.
1 May 2026
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The selloff remained widespread, with almost all sectoral indices trading in the red except metals, oil & gas and PSU banks. Broader markets also came under pressure, with the Nifty Smallcap100 and Midcap100 indices falling 1.26% and 0.81%, respectively.
Oil Prices, Iran Tensions Weigh On Sentiment
Investor sentiment remained fragile amid rising concerns over the prolonged US-Iran conflict and sharp spikes in crude oil prices.
Brent crude climbed close to $105 per barrel, intensifying worries over inflation, India's import bill and pressure on the current account deficit. India imports over 85% of its crude oil requirements, making domestic markets highly vulnerable to global energy shocks.
Markets also reacted negatively after US President Donald Trump said the ceasefire with Iran was at its "weakest" and on "massive life support", reviving fears of further disruption in global oil supplies.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the Prime Minister's recent austerity appeal impacted sectors linked to discretionary consumption such as jewellery, travel and hotels.
However, he added that sectors such as pharmaceuticals and FMCG are likely to remain resilient due to stable demand patterns and benefits from rupee depreciation.
Vijayakumar also highlighted capital goods as a sector to watch, citing signs of recovery in private capex and sustained demand in automobiles and renewable energy.
Rupee Hits Fresh Record Low
The rupee weakened further to hit a fresh all-time low of 95.63 against the US dollar, intensifying concerns around imported inflation and foreign capital outflows.
The currency opened at 95.57 and slipped further during the session amid rising crude prices and global risk aversion.
Persistent foreign selling also continued to pressure markets. Foreign Institutional Investors offloaded equities worth ₹8,437.56 crore on Monday, adding to weakness in benchmark indices.
IT Stocks Lead Market Decline
Information technology shares emerged as the biggest drag on the market ahead of key US inflation data.
The Nifty IT index plunged over 3.7%, with heavyweights such as Infosys, TCS, HCLTech and Wipro declining between 2.5% and 4%.
Coforge, Persistent Systems, LTIMindtree and Tech Mahindra also traded sharply lower.
Analysts said concerns around slowing global growth and weaker technology spending by overseas clients continued to hurt sentiment in the sector.
Banking and financial stocks also remained under pressure, with ICICI Bank, HDFC Bank, Axis Bank and SBI Life trading lower.
Despite the broader weakness, oil-linked stocks witnessed selective buying. ONGC gained nearly 4% as higher crude prices improved sentiment around upstream energy companies.
Volatility Index Rises
India VIX, the market's volatility gauge, rose nearly 2% to 18.87, indicating rising nervousness among investors.
Markets are also awaiting India's April retail inflation data later in the day for further cues on inflation trends and the potential economic impact of elevated crude prices.
Vatsal Bhuva, Technical Analyst at LKP Securities, said GIFT Nifty signalled a weak opening and noted that the 23,800 level has now become a key resistance zone for the Nifty.
According to Bhuva, the index may find immediate support near the 23,550-23,600 range, though the broader market setup continues to favour a "sell on rise" strategy in the near term.
Analysts said market direction in the near term would largely depend on crude oil prices, developments in the US-Iran conflict, inflation data and the trajectory of foreign institutional flows.
