Sensex Plunges 1,045 Points, Nifty Hits 2026 Low as Oil Prices Surge
Mumbai — Indian stock markets suffered heavy losses Thursday as surging global crude oil prices, concerns over prolonged high interest rates and continued foreign investor outflows triggered widespread selling.
The benchmark BSE Sensex plunged 1,045.46 points, or 1.44%, to close at 71,593.24, extending its decline for a second consecutive session. The index fell as low as 71,327.75 during intraday trading.
The NSE Nifty 50 dropped 371.25 points, or 1.64%, to settle at 22,231.80 after touching an intraday low of 22,179.90, its lowest level of 2026.
The sell-off followed a 4% surge in Brent crude oil prices, which climbed above $104 per barrel, renewing concerns about inflation and the possibility that interest rates could remain elevated longer than previously expected.
Higher oil prices pose particular challenges for India, a major crude importer, as rising energy costs can increase inflationary pressures, weaken corporate profit margins and weigh on economic growth.
Market analysts pointed to weakening technical indicators, noting that the Nifty had fallen below its 50-day simple moving average and broken several important support levels.
“Technically, the Nifty closed below its monthly 50-SMA, confirming deterioration in the medium-term price structure. It also broke the 22,550–22,600 and 22,400 support zones, placing the psychological 22,000 level in focus,” market analysts said.
They added that any recovery could encounter resistance near 22,400 and 22,600.
Selling pressure spread across most sectors, with only three of the 30 Sensex companies managing to finish higher. Tech Mahindra, Axis Bank and Infosys were the session’s only gainers.
ITC, IndiGo, Power Grid Corporation and Bharat Electronics were among the biggest losers, each declining more than 3%. NTPC, Reliance Industries and Maruti Suzuki also recorded substantial losses.
Metal stocks were particularly hard hit, making the Nifty Metal index the worst-performing sectoral benchmark. Information technology stocks showed relative strength, with the Nifty IT index outperforming the broader market.
The decline extended to smaller companies as investors reduced exposure to riskier assets. The Nifty MidCap index fell 2.53%, while the Nifty SmallCap index lost 2.34%.
Persistent foreign institutional investor selling further weighed on market sentiment, adding to concerns about tightening global financial conditions.
Investors are now turning their attention to the upcoming second-quarter corporate earnings season for indications of how companies are managing rising costs and changing demand conditions.
“Looking ahead, the market focus shifts to the Q2 earnings season, where management commentary on demand sustainability and input cost absorption will provide critical near-term direction,” market analysts said.
Analysts expect corporate earnings, crude oil movements and foreign investment flows to remain important drivers of market sentiment in the coming sessions. (Source: IANS)
