Mumbai — Indian stock markets suffered sharp losses Thursday as soaring crude oil prices, persistent foreign investor outflows and concerns over prolonged high interest rates triggered widespread selling across major sectors.
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 trading.
The NSE Nifty 50 dropped 371.25 points, or 1.64%, to settle at 22,231.80. It touched an intraday low of 22,179.90, its lowest level of 2026.
Investor sentiment weakened as Brent crude oil prices surged 4%, crossing $104 per barrel and renewing concerns about inflation, economic growth and corporate profitability.
The jump in energy prices also raised expectations that central banks in India and other major economies could maintain elevated interest rates for longer than previously anticipated.
Market analysts said the Nifty’s decline below key technical support levels indicated further weakness in the near term.
“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 identified 22,400 and 22,600 as potential resistance levels if the market attempts a recovery.
Selling pressure was widespread, with only three of the 30 Sensex constituents closing 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 shares showed relative resilience, with the Nifty IT index outperforming the broader market.
The sell-off extended to smaller companies as investors reduced exposure to riskier assets. The Nifty MidCap index fell 2.53%, while the Nifty SmallCap index declined 2.34%.
Continued foreign institutional investor selling added to market volatility, while uncertainty surrounding global monetary policy and rising energy costs further dampened investor confidence.
Analysts said attention would now turn to the upcoming second-quarter corporate earnings season for indications of business resilience and the impact of rising input costs.
“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. (Source: IANS)
