Sensex Falls 364 Points As Oil Nears $100; Nifty Extends Losing Streak

Indian benchmark indices extended losses for a fourth consecutive session on Thursday as surging crude oil prices, persistent foreign fund outflows and weak global cues weighed on investor sentiment.

The Sensex fell 363.66 points, or 0.47%, to close at 76,391.39, while the Nifty 50 declined 126.65 points, or 0.53%, to 23,869.60.

Market breadth remained weak, with 2,479 stocks declining, 1,569 advancing and 155 remaining unchanged on the NSE.

Among Nifty constituents, Adani Enterprises, Shriram Finance, Nestle India, Adani Ports and Bajaj Finance were the top losers, while Bajaj Auto, SBI Life Insurance, Mahindra & Mahindra, TCS and Eicher Motors ended higher.

Broad-Based Selling Hits Most Sectors

Selling pressure was widespread across sectors, with Nifty Realty emerging as the worst performer, falling 1.8%.

Other major laggards included Nifty Oil & Gas, Infrastructure, PSU Bank and Energy, each declining around 1%. Metal fell 0.7%, while Pharma, FMCG and Consumer Durables each slipped around 0.4%.

The broader market also remained under pressure, with the Nifty Midcap and Smallcap indices losing around 1% each.

Despite the weak sentiment, the Nifty Auto index outperformed, rising 0.7%, supported by upbeat quarterly earnings. Media was the only other sector to end in positive territory, gaining 0.22%.

Crude Rally Keeps Investors Cautious

Investor sentiment remained under pressure as Brent crude climbed above $98 a barrel, extending gains for a fifth straight session and touching a six-week high amid escalating tensions in West Asia and fresh Houthi attacks on oil tankers in the Red Sea.

The rally, driven by concerns over potential supply disruptions through the Strait of Hormuz and Bab el-Mandeb, has intensified fears of higher inflation and rising input costs for businesses. Brent crude has gained around 4% over the past few sessions, bringing prices closer to the $100-a-barrel mark.

Adding to the cautious mood, Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹819.20 crore on Wednesday after a brief pause in selling.

Auto Stocks Stand Out

European markets also traded lower during the session after technology stocks came under pressure, led by STMicroelectronics NV, which slumped 17% following a weaker-than-expected sales outlook.

Meanwhile, the Indian rupee ended unchanged at 96.57 per dollar.

According to Vinod Nair, Head of Research at Geojit Investments, markets remained under pressure as investors reassessed inflation risks and corporate margins amid the sharp rise in crude oil prices. He said elevated energy costs have strengthened expectations of a higher-for-longer global interest rate environment, reducing risk appetite toward emerging markets. However, auto stocks bucked the broader trend on the back of strong quarterly earnings, indicating that investors continue to favour companies with resilient earnings growth, healthy demand and better earnings visibility despite heightened market volatility.