Soaring crude, West Asia tensions drag Sensex down 561 pts; Nifty slips below 24,100

Indian equity benchmarks ended sharply lower on Tuesday as escalating tensions in West Asia and a sharp spike in crude oil prices triggered broad-based selling across sectors, with traders also remaining cautious on the weekly Nifty expiry day.

The BSE Sensex plunged 561.46 points, or 0.72%, to settle at 77,054.94, while the Nifty 50 declined 158.95 points, or 0.66%, to close at 24,052.05, slipping below the 24,100-mark. The weakness extended to the currency market, with the rupee falling 62 paise to close at 96.30 against the US dollar, reflecting heightened risk aversion.

Crude rally, geopolitical worries weigh on sentiment

Investor sentiment remained under pressure after crude oil prices surged amid geopolitical uncertainty in West Asia. Brent crude rose over 4% to $86.87 a barrel, while WTI crude gained more than 3% to $80.57 a barrel during the session, fuelling concerns over imported inflation and higher input costs for the Indian economy.

The spike in oil prices comes at a time when markets are closely tracking developments in the region, with investors worried that prolonged tensions could disrupt energy supplies and keep commodity prices elevated.

Adding to the cautious mood was the weekly Nifty derivatives expiry on Wednesday, prompting traders to trim leveraged positions and avoid aggressive bets ahead of expiry.

Realty, PSU banks and auto stocks lead losses

The sell-off was broad-based, with rate-sensitive sectors bearing the brunt. The Nifty Realty index declined 1.97%, followed by Nifty PSU Bank (-1.80%), Nifty Auto (-1.61%) and Nifty IT (-1.00%). FMCG and Oil & Gas stocks also ended lower.

Defensive buying, however, emerged in select pockets. Nifty Pharma gained 1.03%, while the Nifty Metal index rose 0.61%, making them the only major sectoral gainers for the day.

HCL Tech among top drags

HCL Technologies was the biggest drag on the Nifty after its quarterly earnings disappointed investors. Other major losers included Shriram Finance, HDFC Life Insurance, Trent and State Bank of India.

On the gaining side, Bharti Airtel led the winners, followed by Apollo Hospitals, Sun Pharmaceutical Industries, Dr Reddy's Laboratories and Tata Steel, as investors sought refuge in telecom, healthcare and select metal stocks.

With crude oil prices remaining elevated and geopolitical risks still in focus, market participants are expected to closely monitor the progress of the earnings season, foreign institutional investor activity and the outcome of Wednesday's weekly Nifty expiry for near-term direction. The trajectory of global oil prices and the rupee will also remain key variables influencing domestic market sentiment.