Sensex plunges 813 points, Nifty ends below 23,450 as oil tops $100
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Indian equity benchmarks extended their losing streak for a third straight session on Wednesday, with the Sensex plunging over 800 points and the Nifty closing below the 23,450 mark as escalating tensions in West Asia pushed Brent crude above $100 a barrel.
Persistent selling in information technology stocks, fresh foreign fund outflows and a broader risk-off mood further weighed on investor sentiment.
The 30-share BSE Sensex dropped 813.35 points, or 1.08%, to settle at 74,764.23, while the NSE Nifty declined 203.60 points, or 0.86%, to 23,431.50. Both benchmarks closed at their day’s lows.
The selloff came amid renewed concerns over the impact of elevated crude prices on and India’s macroeconomic stability. Brent crude, the global oil benchmark, jumped 2.67% to $100.50 per barrel.
“Indian equity markets extended their decline for a third consecutive session, with benchmark indices ending firmly lower as persistent selling pressure and a broad risk-off mood kept sentiment subdued. Elevated crude oil prices, lingering geopolitical tensions and a sharp rise in market volatility continued to weigh on investor confidence, reinforcing the market’s prevailing bearish undertone,” said Ponmudi R, CEO of Enrich Money.
IT stocks bear the brunt
Information technology stocks as the biggest drag on the benchmark indices. The Nifty IT index fell 3.24%, with selling spread across major constituents.
Infosys was the worst-performing Nifty 50 stock, falling 4.34%. HCL Technologies declined 3.70%, Tech Mahindra dropped 3.27%, while TCS fell 2.11%. Wipro also shed 2.62%.
HCL Tech was the biggest laggard among Sensex constituents, losing 4.55%.
The IT selloff was also aggravated by the sharp decline in Coforge following the resignation of chairman and independent director O P Bhatt amid concerns raised during an internal audit review.
Metals, Adani stocks buck trend
Despite the broad-based decline, metal stocks staged a strong performance. The Nifty Metal index gained 1.79%, while the energy index rose 0.6%.
Adani Enterprises emerged as the biggest Nifty 50 gainer, climbing 5.13%. Adani Ports gained 3.80%, while Tata Steel rose 2.50% and Coal India advanced 2.56%.
Max Healthcare was another major gainer, rising 4.48%.
Broader markets also declined, though less sharply than the headline indices, with the Nifty Midcap 100 and Smallcap 100 falling 0.51% and 0.48%, respectively.
India VIX, the market’s volatility gauge, jumped 6.32% to 11.94, signalling heightened caution among investors.
“India VIX climbed more than 6%, reflecting increased hedging activity and growing caution over the near-term outlook,” Ponmudi added.
Foreign Institutional Investors sold equities worth ₹123.19 crore on Tuesday, adding to the pressure on domestic equities. The rupee also remained under pressure, closing at 95.10 against the US dollar.