Sensex fell 161 points as rupee weakness and fuel hikes hurt sentiment.
Rupee hit a record low near 96/$ amid crude above $109.
PSU banks and metal stocks dragged markets despite IT sector gains.
Indian benchmark indices ended lower on Friday as investors turned cautious amid rising inflation concerns, a record low rupee and elevated crude oil prices, with weakness in PSU banks, metals and oil-linked stocks weighing on sentiment.
At close, the Sensex declined 160.73 points or 0.21% to settle at 75,237.99, while the Nifty fell 46.10 points or 0.19% to end at 23,643.50.
1 May 2026
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Market breadth remained weak, reflecting broader selling pressure across segments. A total of 2,381 stocks declined against 1,631 advances. The broader markets also underperformed, with the Nifty Midcap100 index declining 0.45%, while the Smallcap100 fell 0.61%.
Among sectoral indices, Nifty PSU Bank emerged as one of the biggest laggards, falling 1.8%, while Nifty Oil & Gas and Realty indices declined 1.67% and 1.79%, respectively.
Rupee Slides To Record Low
The Indian rupee remained at the centre of investor concerns after slipping beyond the psychologically important 96-per-dollar level during intraday trade.
The domestic currency later settled at a record closing low of 95.97 against the US dollar, weakening by 21 paise during the session.
The rupee has emerged as Asia's weakest-performing currency in recent weeks due to rising oil prices, elevated import costs and sustained pressure from external factors.
Brent crude remained above $109 per barrel, increasing concerns around India's import bill and inflation outlook. The rise in crude prices comes amid prolonged disruptions linked to the West Asia conflict and uncertainty surrounding the Iran situation.
The US dollar index also strengthened for a fourth straight session after stronger-than-expected US macroeconomic data reduced expectations of aggressive interest rate cuts by the US Federal Reserve.
Fuel Price Hike Revives Inflation Concerns
Adding to worries, the Centre raised petrol and diesel prices by ₹3 per litre with immediate effect. The move marked a significant shift in fuel pricing after years of stability and sparked concerns regarding inflation and consumer spending.
Analysts said the increase was aimed at managing fuel demand amid ongoing supply disruptions linked to the Iran conflict and rising global energy prices.
Vinod Nair, Head of Research at Geojit Investments, said investors turned cautious after the recent relief rally as fresh fuel price hikes, higher bond yields and rupee weakness revived inflation concerns.
He added that while strong Q4 earnings and attractive valuations continue to support the market, attention has shifted toward possible fiscal and monetary measures aimed at stabilising the rupee and managing external pressures.
Nair also noted that developments surrounding the Strait of Hormuz and the Trump-Xi meeting remain key variables for market direction.
Metals, PSU Banks Drag Broader Markets
Metal shares remained under pressure throughout the session, with the Nifty Metal index falling 1.93%. Weakness in Hindalco, Tata Steel and JSW Steel dragged the sector lower and weighed on benchmark indices.
PSU banking stocks also saw heavy selling pressure, pulling down broader market sentiment.
In contrast, select sectors showed resilience. The Nifty IT index gained 1.3%, while Nifty Media rose nearly 2% despite broader weakness. India VIX rose 0.97% to indicate continued caution among traders.
Technical Indicators Suggest Weakness
Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said the Nifty initially traded positively and climbed to an intraday high of 23,839 before witnessing selling pressure at higher levels.
According to Shah, the index formed a small-bodied candle with an upper wick on the daily chart, indicating rejection at higher levels.
He added that despite recent pullbacks, Nifty continues to trade below its key moving averages, suggesting that the broader trend remains weak.
He further said market breadth remained weak, with 319 stocks from the Nifty500 universe ending in the red, reflecting persistent selling pressure despite isolated pockets of strength.
