Sensex slumps 1,690 points, Nifty ends below 22,900 on crude surge; Rupee hits fresh record low

Equity benchmarks ended sharply lower on Friday, extending losses for a fifth straight week, as a spike in crude oil prices, a record fall in the rupee, and sustained foreign outflows triggered broad-based selling.

The BSE Sensex plunged over 1,690.23 points to close at 73,583.22, while the Nifty 50 slipped 486.85 points to end at 22,819.60, indicating a deep risk-off sentiment across markets.

"Profit booking set in after the recent two-session rally as the rupee fell to an all-time low amid sustained FII selling, while escalating tensions in the Middle East heightened caution among investors ahead of the weekend," Vinod Nair, head of research, Geojit Investments Limited, said.

Crude, currency shock drive selloff

The selloff was led by concerns over surging crude oil prices, with Brent surging above $110 per barrel amid escalating geopolitical tensions in West Asia. India VIX, which is the volatility index, surged 8.78% to end at 26.80 today.

At the same time, the rupee weakened past 94 per dollar, hitting record lows and amplifying fears of imported inflation and pressure on corporate margins.

Financials, cyclicals lead declines

All sectoral indices closed in red today with banking and financial stocks among the biggest laggards. Stocks such as State Bank of India, ICICI Bank and Kotak Mahindra Bank declined during the session, reflecting risk aversion in rate-sensitive segments.

Cyclical stocks, including auto and metals, also remained under pressure amid concerns over demand and input cost pressures. Top losers on the Nifty 50 index include Shiram Finance, Tata Motors PV, Reliance Industries, IndiGo, and Bajaj Finance.

Stock markets were closed on Thursday on account of Ram Navami.

Foreign institutional investors (FIIs) offloaded equities worth ₹1,805.37 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth ₹5,429.78 crore.

Energy stocks offer limited support

Oil and gas stocks showed relative resilience, with upstream companies benefiting from higher crude prices.

Top gainers on the Nifty 50 index include ONGC, Wipro, Bharti Airtel, TCS, Coal India, and Power Grid Corporation

Since the onset of geopolitical tensions in late February, Indian markets have declined nearly 10%.

In Asian markets, South Korea's benchmark Kospi and Japan's Nikkei 225 index ended lower, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled in positive territory.