Sensex drops 785 points, Nifty falls 1% below 22,350; TCS, Infosys, HCLTech buck trend

Indian benchmark indices extended their decline on Thursday as rising crude oil prices, the Reserve Bank of India’s hawkish policy shift and weakness in the rupee kept investors on edge. Caution ahead of the September-quarter earnings season added to the nervousness, with IT bellwether TCS set to announce its Q2 results after market hours on Thursday.

The BSE benchmark Sensex fell as much as 785 points, or 1.1%, to an intraday low of 71,853.90. The index was trading at 71,888.93, down 749.77 points, or 1.03%, at the time of reporting.

Similarly, the NSE Nifty50 tumbled as much as 255 points, or 1.13%, to 22,347. It was trading at 22,353.40, down 249.65 points, or 1.10%.

The broader market also remained under pressure. The Nifty Midcap 100 declined 1.49%, while the Nifty Smallcap 100 fell 1.79%. India VIX, the market’s volatility gauge, rose 5.95% to 14.71, signalling heightened nervousness among investors.

Metal, realty lead sell-off; IT stocks buck trend

Selling was broad-based, with the Nifty Metal index emerging as the biggest sectoral laggard, falling 3%. The Nifty Oil & Gas index dropped 2.29%, weighed down by a 2.27% decline in heavyweight Reliance Industries.

The Nifty Realty index fell 1.95%, while the Nifty Healthcare and Pharma indices declined 1.62% and 1.53%, respectively. The Nifty Auto index dropped 1.25%, with Maruti Suzuki falling 1.65% and Mahindra & Mahindra declining 1.29%.

The Nifty FMCG index slipped 1.31%, dragged by ITC, which fell 3.88%. The Nifty Media index declined 1.01%, while the Nifty Consumer Durables index fell 0.64%.

Financial stocks also came under pressure, with the Nifty Financial Services 25/50 index down 0.76%. The Nifty Private Bank index declined 0.45%, while the Nifty PSU Bank index slipped 0.24%.

In contrast, the Nifty IT index rose 1.06%, emerging as the only major sectoral gainer. IT stocks were among the strongest performers on the benchmark, with Tech Mahindra gaining 1.03%, TCS rising 0.94%, Infosys advancing 0.83% and HCL Technologies climbing 0.82%.

Adani Ports, ITC among biggest losers

Among benchmark stocks, Adani Ports emerged as the biggest loser, falling 3.96%, followed by ITC, down 3.88%. InterGlobe Aviation (IndiGo) declined 3.19%, while Power Grid Corporation fell 2.76%.

Reliance Industries slipped 2.27%, Bajaj Finserv declined 2.01% and Bharat Electronics fell 1.98%. Maruti Suzuki lost 1.65%, Eternal declined 1.59% and Tata Steel fell 1.57%.

Other major laggards included Larsen & Toubro, down 1.55%; HDFC Bank, down 1.53%; Mahindra & Mahindra, down 1.29%; NTPC, down 1.25%; Asian Paints, down 1.15%; Sun Pharma, down 1.08%; UltraTech Cement, down 1.08%; and Bharti Airtel, down 1.05%.

Among financial stocks, State Bank of India declined 0.99%, Bajaj Finance fell 0.71% and Kotak Mahindra Bank slipped 0.57%. ICICI Bank was down 0.24%, while Axis Bank gained 0.30%.

IT stocks hold ground ahead of TCS results

IT stocks bucked the broader market weakness as investors turned their attention to the September-quarter earnings season, which kicks off in earnest with TCS reporting its Q2 numbers after market hours on Thursday.

Tech Mahindra rose 1.03% to ₹1,504.40, while TCS gained 0.94% to ₹2,103.65. Infosys advanced 0.83% to ₹1,000.30 and HCL Technologies climbed 0.82% to ₹1,193.50.

TCS results will provide the first major read-through on demand conditions, deal activity and margin trends in the IT sector, with investors also watching management commentary on the outlook for growth.

Crude prices, rate hike add to risk-off mood

Rising oil prices added to concerns over inflation and the broader macroeconomic outlook. Brent crude rose nearly 3% amid supply concerns and remained above the $100-a-barrel mark.

Persistent concerns over attacks on supply lines around the Strait of Hormuz have kept energy prices elevated, adding to inflationary pressures and complicating the outlook for global central banks.

The RBI’s decision to raise the repo rate by 25 basis points to 5.5%—the first hike since February 2023—has added to uncertainty for equity investors.

The Monetary Policy Committee also shifted its stance from ‘neutral’ to ‘calibrated tightening’, signalling a more restrictive policy bias amid renewed risks from crude prices and inflation.