Sensex Slides Over 850 Points, Nifty Goes Below 24,200 as Oil Boils and Burns Stocks

Mumbai, April 23:Markets ended sharply lower on Thursday as rising crude prices punished stocks across the board, particularly those of financials, auto and consumer durable goods.

The BSE Sensex went downover 850 points to close at 77,664, while the Nifty 50 declined more than 200points to end below the 24,200 mark after a volatile session of constant selling.

Weak Start

The markets got off to a weak start as stocks priced in oil prices before plunging further as the day progressed.

The Nifty hit an intraday low of 24,135amid the selloff, showing broad-based weakness.

The meltdown in markets was primarily caused by oil as Brent held above $100 per barrel with the Middle East ceasefire failing to convince traders about any prospects of peace arriving in the region, especially after disruptions in the Strait of Hormuz.

Moreover, rising crude poses risks of inflation for India, something that weighed on sentiment throughout.

Financial Damage

The carnage in Indian markets was led by financial and auto stocks as banking heavyweights, particularly PSU lenders melted under heat from oil, while auto stocks derailed over concerns around increasing input costs linked to higher crude prices.

To be sure, consumption-oriented stocks also came under the carnage as higher oil prices stoked concerns about an inflation affecting demand for goods. However, some pockets of resilience were visible, with pharma stocks gaining, supported by defensive buying and higher crude prices.

The biggest losers on Nifty were Trent, M&M, ShriramFinance, SBI LifeInsurance, and Tech Mahindra. On the other hand, the biggest risers included Dr Reddy’s Labs, Cipla, Jio Financial, Adani Enterprises, and Apollo Hospitals.

Broader Markets

Broader market sentiment remained weak as the Nifty midcap index slid 0.4 percent and the smallcap index went down 0.6 percent. Market breadth was firmly negative, indicating widespread selling across sectors, with as many as 2,409 shares declining, 1,688 shares rising, and 155 shares remaining unchanged.

Global cues also offered little support. While US markets had closed at record highs overnight, sentiment in Asia remained mixed, and European markets traded cautiously. The fragile Iran ceasefire and ongoing geopolitical tensions kept investors on edge, limiting risk appetite.

Adding to the pressure, the Indian rupee weakened past the 94 mark against the US dollar during the session, reflecting the impact of rising oil prices and capital outflows. A weaker currency further dampened sentiment, particularly for import-heavy sectors.

Foreign institutional investor (FII) activity also remained a concern, with continued outflows weighing on the market. Rising US bond yields and a stronger dollar have made emerging markets less attractive, prompting caution among global investors.

Market Sensitivity

Overall, Thursday’s decline underscores the market’s sensitivity to global developments, particularly oil prices and geopolitical risks. With crude remaining elevated and uncertainty around the Middle East situation persisting, analysts expect volatility to remain high in the near term.

Going ahead, investors will closely track movement in oil prices, currency trends and global cues for direction. Until there is clarity on the geopolitical front or a cooling in crude prices, the market is likely to remain under pressure, with downside risks persisting in the short term.

Source:

• https://www.nseindia.com/
• https://www.bseindia.com/