Sensex drops 983 points, Nifty slips below 24,000 as crude oil surge hits markets
Indian stock markets ended sharply lower on Friday as rising crude oil prices and geopolitical tensions weighed on investor sentiment. IT stocks led the decline, while concerns over inflation and current account deficit kept market participants cautious
Mumbai: Indian equity benchmarks ended sharply lower on Friday as a surge in crude oil prices rattled investor sentiment amid rising geopolitical tensions linked to stalled US-Iran talks and disruption at the Strait of Hormuz.
The Sensex dropped 982.71 points, or 1.27 per cent, to close at 76,681.29, while the Nifty declined 275.10 points, or 1.14 per cent, to settle at 23,897.95.
Commenting on technical outlook, experts said that on the upside, 24,000 has now emerged as a strong resistance band, as the previous support has transitioned into a supply zone, capping recovery attempts.
“A decisive move above 24,000 is required to ease selling pressure and trigger a recovery towards 24,200, while a break below 23,800 could extend weakness towards the 23,600 level,” an analyst stated.
The sell-off was largely driven by weakness in information technology stocks, which bore the brunt of the decline.
Shares of Infosys, Tata Consultancy Services, and Tech Mahindra emerged as the top losers on the Nifty IT index, dragging the sector down by around 5 per cent.
Broader markets also mirrored the weak trend, with the Nifty MidCap and Nifty SmallCap indices falling 0.96 per cent and 0.87 per cent, respectively.
Among sectors, apart from IT, the Nifty Pharma and Nifty Media indices also ended in the red, adding to the overall market weakness.
However, the Nifty Metal index showed relative resilience, posting the smallest decline among sectoral indices.
Investor sentiment was dampened by a sharp rise in global crude oil prices. Brent crude surged above the $100 per barrel mark, with the April futures contract trading 2.07 per cent higher at $107.25 per barrel.
The spike in oil prices comes amid continued disruption in energy supplies due to the blockade at the Strait of Hormuz, a key global oil transit chokepoint.
Experts said that market participants remained cautious as elevated crude prices are seen as inflationary and could widen India’s current account deficit, potentially impacting economic stability in the near term.
“The week ended on a weak note, with no meaningful progress in Middle East ceasefire discussions and continued disruption in the Strait of Hormuz,” a market expert noted.
