Mumbai: Indian stock markets suffered a decline as surging crude oil prices, persistent foreign fund outflows and fears of prolonged high interest rates triggered selling.
The Sensex dropped 1,045.46 points, or 1.44%, to close at 71,593.24, marking its second consecutive losing session. It touched an low of 71,327.75.
The Nifty fell 371.25 points, or 1.64%, to finish at 22,231.80. Its intraday low of 22,179.90 was the weakest level recorded in 2026.
Crude Oil Surge Raises Inflation Concerns
jumped 4% and crossed $104 per barrel, renewing concerns about inflation, economic growth and corporate profitability.
Investors worried that higher energy costs could keep domestic and global monetary conditions tight for longer. Continued foreign investor selling added to the cautious mood, limiting confidence in a market recovery.
The combination of expensive oil and elevated borrowing costs left investors focused on pressure on company margins and future earnings.
Metals Lead Losses, IT Shows Resilience
Selling spread across sectors, with Nifty Metal emerging as the biggest sectoral loser. Nifty IT held up relatively better and outperformed the broader market.
Among Sensex constituents, Tech Mahindra, Axis Bank and Infosys were the only gainers. ITC, IndiGo, Power Grid Corporation and Bharat Electronics declined more than 3% each.
NTPC, Reliance Industries and also ranked among the major drags.
Smaller companies faced selling. The Nifty MidCap index declined 2.53%, while the Nifty SmallCap index lost 2.34%, reflecting increased investor risk aversion.
Nifty Support Breaks, Earnings in Focus
Analysts said the Nifty closed below its monthly 50-period simple moving average, signalling deterioration in its medium-term technical structure.
The index breached support zones at 22,550–22,600 and 22,400, bringing the psychological 22,000 level into focus. Any rebound could encounter resistance at 22,400, followed by 22,600.
Attention now turns to Q2 results. Management commentary on demand strength and the ability to absorb higher input costs could shape the market’s next move.