Sensex Closes Lower by 582 Pts as High Crude Oil Prices Dent Investor Sentiment

Mumbai: Benchmark stock indices Sensex and Nifty closed nearly 1 per cent lower on Thursday as crude oil prices, weak global trends and foreign fund outflows weighed on investor sentiment. The 30-share BSE Sensex tumbled 582.86 points or 0.75 per cent to settle at 76,913.50. During the day, it plunged 1,237.5 points, or 1.59 per cent, to 76,258.86, but recovered some of the losses in the second half of the session. The 50-share NSE Nifty dived 180.10 points or 0.74 per cent to end at 23,997.55. Among the 30-Sensex firms, Eternal, Hindustan Unilever, Tata Steel, Larsen & Toubro, UltraTech Cement and Mahindra & Mahindra were the major laggards. Sun Pharma, Infosys, Bajaj Finance and Adani Ports were among the gainers. Brent crude, the global oil benchmark, traded 1.52 per cent lower at USD 116.2 per barrel. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,468.42 crore on Wednesday, according to exchange data. “Indian markets closed a volatile session with a clear shift in intra-day sentiment, where early panic selling was gradually absorbed, leading to a disciplined recovery from the lows. The Nifty-50 opened with a sharp gap down near the crucial 24,000 support, reflecting weak global cues and a risk-off undertone. “Escalating geopolitical tensions in West Asia and Brent crude surging above USD 120 triggered concerns around inflation, currency stability, and margin pressures. This was further aggravated by the rupee hitting record lows, accelerating FII outflows and weakening overall sentiment,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said. However, the second half marked a notable turnaround, he said. In broader markets, the BSE MidCap Select index dropped 0.84 per cent and the BSE SmallCap Select index declined 0.58 per cent. Among sectoral indices, metal tanked the most by 2.13 per cent, followed by PSU Bank (1.66 per cent), Realty (1.44 per cent), Commodities (1.36 per cent), FMCG (1.13 per cent), Financial Services (1.08 per cent) and Industrials (1.05 per cent). “The decline was primarily driven by a sharp surge in crude oil prices, which spiked to multi-year highs amid escalating geopolitical tensions in the Middle East and concerns over supply disruptions through the Strait of Hormuz. “This raised fears of inflationary pressures and macroeconomic instability for oil-importing economies like India. Weak global cues, a sharp depreciation in the rupee to record low levels, and continued foreign institutional outflows further weighed on sentiment,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said. Information Technology, Telecommunication and Focused IT were the winners. “The rise in oil prices, along with persistent FII outflows and weak global cues, led to broad-based weakness across sectors. However, the market witnessed a partial recovery in the latter half, supported by value buying at lower levels and selective institutional participation,” Gaurav Garg, Research Analyst at Lemonn Markets Desk, said. A total of 2,532 stocks declined, while 1,649 advanced and 156 remained unchanged on the BSE. In Asian markets, South Korea’s benchmark Kospi, Japan’s Nikkei 225 index and Hong Kong’s Hang Seng index ended over 1 per cent lower, while Shanghai’s SSE Composite index settled marginally higher. Markets in Europe were trading mixed. US markets ended mostly lower on Wednesday. “Brent crude crossed the USD 120 per barrel mark for the first time in four years, intensifying inflation concerns and pressuring global risk assets. In India, rising oil prices weighed on the INR and revived worries about capital outflows and widening deficits, given the economy’s heavy reliance on crude imports. “The Fed kept rates unchanged but maintained a firm policy stance, supporting the dollar and tightening conditions for emerging markets. Domestically, autos, banks, metals, and real estate led the decline, while IT and pharma saw selective defensive buying,” Vinod Nair, Head of Research, Geojit Investments Limited, said. Stock and forex markets will remain closed on Friday for Maharashtra Day.



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