Indian stock markets remained under heavy pressure today as the Sensex fell more than 600 points and the Nifty slipped below the crucial 23,650 mark. Rising geopolitical tensions in the Middle East and a sharp fall in the Indian rupee triggered panic across Dalal Street.
The Indian rupee weakened to a fresh all-time low near 95.5 against the US dollar as crude oil prices surged above $100 per barrel. Investors are worried that continued US-Iran tensions could disrupt global oil supplies and increase inflation pressure on India.
Market sentiment also remained weak because of continuous FII selling, rising bond yields, and expiry-day volatility in the derivatives market. IT, realty, media, and banking stocks were among the biggest losers today, while oil & gas and metal stocks showed some resilience.
Stocks like Infosys, Asian Paints, and State Bank of India remained under pressure, while energy-linked companies such as ONGC and Oil India saw buying interest due to rising crude prices.
Analysts believe volatility may continue in the near term as investors closely track crude oil prices, rupee movement, inflation data, and geopolitical developments.
If crude oil stays above $100, do you think Indian markets can recover quickly or is more correction still left?
Indian stock markets remained under heavy selling pressure today as the Sensex dropped more than 600 points and the Nifty slipped below the key 23,650 level. Rising tensions between the US and Iran, along with surging crude oil prices and a weak rupee, continued to hurt investor sentiment.
At around 10:30 AM, the Sensex was trading near 75,335 while the Nifty fell close to 23,633. Almost all sectoral indices traded in the red, with IT, realty, pharma, and private banking stocks seeing the biggest decline.
One of the biggest concerns for investors is the sharp rise in crude oil prices, which crossed $105 per barrel amid fears of supply disruption around the Strait of Hormuz. Since India imports most of its crude oil, higher prices could increase inflation pressure and weaken the economy further.
The Indian rupee also hit a fresh record low against the US dollar, while FIIs continued aggressive selling in Indian equities. Expiry-day volatility in the derivatives market added further pressure on stocks.
IT stocks emerged as the biggest drag on the market. Companies like Infosys, Tata Consultancy Services, and HCL Technologies saw sharp declines, while oil-linked companies like ONGC and Oil India gained due to rising crude oil prices.
Experts believe volatility may remain high in the coming days as investors closely track oil prices, geopolitical developments, inflation data, and FII activity.
If crude oil prices continue rising, do you think Indian markets can recover soon or is more correction still left?