Sensex, Nifty Fall Sharply As Crude Surge, Weak Rupee Dent Sentiment

Mumbai, April 13: Benchmark indices ended sharply lower on Monday, with selling pressure intensifying through the session as a spike in global crude oil prices and a weakening rupee dampened investor sentiment.

The BSE Sensex declined over 700 points to close at 76,847, while the Nifty 50 slipped 208 points or 0.86 percent at 23,842.6, reflecting a broad-based risk-off mood across Dalal Street. As many as 1,716 shares advanced, 2,453 shares declined, and 188 shares remained unchanged.

Markets remained under pressure from the outset after crude oil prices surged past the $100-per-barrel mark, triggered by escalating geopolitical tensions and concerns over supply disruptions. The sharp rise in oil prices raised fears of higher inflation and a widening current account deficit, particularly for an import-dependent economy like India.

Adding to the negative sentiment was the weakness in the Indian rupee, which depreciated against the US dollar during the session. A weaker currency not only increases the cost of crude imports but also amplifies inflationary pressures, prompting investors to turn cautious.

Crude Shock

Sectorally, crude-sensitive stocks bore the brunt of the sell-off. Oil marketing companies saw sharp declines as rising crude prices threaten to squeeze marketing margins. Aviation stocks also came under pressure due to concerns over higher aviation turbine fuel (ATF) costs, while paint companies slipped on expectations of increased input costs, given their dependence on crude-linked derivatives.

The selling, however, was not limited to these pockets. The broader market also witnessed weakness, with midcap and smallcap indices ending in the red and shedding 0.5% each, indicating that risk aversion was widespread. Financial stocks contributed to the decline, while IT shares also traded lower amid continued uncertainty around global demand.

Going Down

Except power, defence, and telecom, all other sectors ended in the red as FMCG, auto, IT, energy, and oil & gas went down 1% each.

HDFC Life, Adani Enterprises, ICICI Bank, NTPC, and Tata Motors Passenger Vehicles were among top gainers on the Nifty, while losers included Maruti Suzuki, Eicher Motors, Reliance Industries, Bajaj Finance, and InterGlobe Aviation.

Market participants remained cautious in the absence of strong domestic triggers, with global cues dictating direction. Rising geopolitical tensions, coupled with elevated oil prices, have once again brought macroeconomic concerns to the forefront.

Cascading Impact

Analysts noted that sustained crude prices above $100 per barrel could have a cascading impact on inflation, fiscal balance, and corporate margins, which in turn could weigh on equity markets. The combination of higher input costs and currency depreciation poses a challenge for multiple sectors, especially those reliant on imports.

Looking ahead, market direction is expected to remain closely tied to global developments. Investors will track crude oil price trends, currency movement, and geopolitical cues for further clarity. Any stabilisation in oil prices or easing of tensions could provide some relief, but volatility is likely to persist in the near term.

Overall, Monday’s session underscored the market’s vulnerability to external shocks, with macro headwinds taking centre stage and overshadowing stock-specific triggers.

Source: NSE, BSE

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