By Our Business Correspondent
Domestic equity markets ended sharply lower on Thursday, weighed down by surging crude oil prices, weak global cues and persistent foreign institutional outflows that dampened investor sentiment. The benchmark indices came under broad-based selling pressure, with banking and financial stocks leading the decline, even as select IT stocks offered limited support.
The 30-share Sensex fell 582.86 points, or 0.75%, to close at 76,913.50, while the Nifty 50 dropped 180.10 points, or 0.74%, to settle at 23,997.55—slipping below the psychologically crucial 24,000 mark during the session. Analysts attributed the decline largely to rising macroeconomic concerns, particularly the spike in global crude oil prices and its implications for inflation and India’s fiscal balance.
Brent crude prices hovered near the $120-per-barrel mark during the day, amid escalating geopolitical tensions linked to potential curbs on Iran’s ports and concerns over supply disruptions in the Middle East. Elevated oil prices are a key risk factor for India, which imports the bulk of its crude requirements, and tend to widen the current account deficit while fuelling domestic inflation.
Market participants remained cautious as global cues offered little comfort. Asian markets ended mostly lower, tracking overnight weakness on Wall Street, where investors reacted to uncertainty over US monetary policy and geopolitical risks. Reports suggesting a prolonged blockade of Iranian ports added to concerns of sustained supply constraints in global energy markets.
Back home, the weakness in equities was further exacerbated by continued foreign fund outflows and currency volatility. The Indian rupee, which briefly hit a record low of 95.3450 against the US dollar during the session, added to investor unease. Although it later recovered slightly to trade around 94.84, the sharp depreciation underscored pressure on emerging market currencies amid global uncertainty.
Sectorally, most indices ended in the red, with banking stocks taking the brunt of the selling. Shares of Larsen & Toubro declined 2.03%, while ICICI Bank and HDFC Bank fell 1.09% and 0.98%, respectively, dragging the indices lower. The Nifty IT index, however, bucked the broader trend, supported by a relatively stable outlook for technology exporters amid a softer dollar index.
Broader markets also reflected the weak sentiment. The BSE MidCap index slipped 1.01%, while the SmallCap index declined 0.50%. Market breadth remained negative, with 2,532 stocks declining against 1,649 advances on the BSE, indicating widespread selling pressure across sectors.
Volatility in the market spiked sharply, with the India VIX rising 5.86% to 18.46, reflecting heightened investor nervousness in the near term. Analysts said that the surge in volatility suggests markets could remain choppy in the coming sessions, especially amid global uncertainties.
In the bond market, the yield on India’s 10-year benchmark government security rose to 7.040%, compared with 6.995% in the previous session, indicating selling pressure in debt markets as well. Meanwhile, gold prices surged, with MCX gold futures for June delivery rising 1.78% to ₹1,51,700, as investors sought safe-haven assets amid geopolitical and economic uncertainty.
Global developments continued to influence domestic sentiment. European markets traded higher as investors focused on upcoming monetary policy decisions from the European Central Bank and the Bank of England. However, macroeconomic data from the Eurozone indicated slowing growth, with GDP expanding just 0.1% quarter-on-quarter in Q1 2026, below expectations.
Inflationary pressures in Europe also intensified, with euro area inflation rising to 3.0% in April, driven largely by a sharp jump in energy prices. The data reinforced concerns that central banks may have limited room to ease monetary policy in the near term.
In the United States, Wall Street ended on a mixed note overnight. The Dow Jones Industrial Average declined 0.57%, marking its fifth consecutive fall, while the S&P 500 remained largely flat and the Nasdaq Composite posted marginal gains. US Federal Reserve Chair Jerome Powell warned that elevated oil prices could push inflation higher in the near term, even as the Federal Open Market Committee decided to keep interest rates unchanged at 3.5%–3.75%.
Among individual stocks, earnings and corporate developments drove specific movements. Hindustan Unilever declined 2.70% despite reporting a nearly 21% jump in quarterly profit. Bajaj Finance rose 0.72% after posting strong earnings growth, while Bajaj Finserv slipped 0.99% despite moderate gains in profit and revenue.
Bajaj Auto surged 4.78% after announcing that its board would consider a share buyback proposal in its upcoming meeting. MTAR Technologies jumped over 14% following strong earnings from its key client, Bloom Energy, in the US, highlighting positive spillover effects from global demand.
Adani Power gained 1.35% after reporting a robust 64% rise in net profit, while Time Technoplast advanced on receiving regulatory approval for hydrogen cylinder manufacturing. On the downside, HEG dropped sharply after reporting widening losses, and RPG Life Sciences surged despite a decline in profit, reflecting mixed investor reactions to earnings.
Looking ahead, market participants are expected to remain cautious amid persistent global uncertainties, particularly related to crude oil prices, geopolitical developments and central bank policy trajectories. The stock market will remain closed on Friday, 1 May 2026, on account of Maharashtra Day, which may also lead to subdued trading volumes ahead of the long weekend.
Disclaimer: This report is for informational purposes only and does not constitute investment advice. Market data and corporate results are based on available information at the time of publication and are subject to revision. Investors are advised to consult certified financial advisors before making any investment decisions.