Sensex, Nifty fall sharply as crude oil crosses $100; IT stocks lead sell-off

The Sensex opened at 75,216.22 and closed at 74,764.23, down 813.35 points, or 1.08%. The Nifty 50 opened at 23,522.05 and ended at 23,431.50, down 203.60 points, or 0.86%.

In Short

• Sensex fell over 800 points as Brent crude crossed $100 a barrel
• Metal stocks bucked trend, Nifty Metal index rose 1.79%
• India VIX rose 6.32%, signalling increased market nervousness

Benchmark indices ended sharply lower on Wednesday, with the BSE Sensex falling more than 800 points as Brent crude crossed the $100-a-barrel mark and a fresh sell-off in IT stocks added to pressure on the market.

The Sensex closed at 74,764.23, down 813.35 points, or 1.08%, while the Nifty 50 declined 203.60 points, or 0.86%, to 23,431.50. The Sensex opened at 75,216.22 and touched a high of 75,251.23 before slipping to its day's low of 74,764.23. The Nifty opened at 23,522.05, hit a high of 23,571.55 and ended at its day's low of 23,431.50.

The sell-off intensified as crude oil prices moved closer to and then crossed the psychologically important $100-a-barrel level. Brent crude was trading at $100.47, up 2.60%, while WTI crude rose 2.28% to $95.15. Rising oil prices are a concern for India as they can increase the country's import bill, put pressure on inflation and widen the trade deficit.

Vinod Nair, Head of Research, Geojit Investments Limited, said, that markets are increasingly pricing in a prolonged Middle East conflict, with continued hostilities and retaliatory actions expected to keep crude oil prices elevated in the near term.

"Persistent geopolitical uncertainty is making it difficult for major central banks to achieve a balance between growth and inflation, while higher energy costs pose risks to both economic activity and price stability. With bond yields and currencies remaining volatile, investors are likely to adopt a cautious stance, limiting risk appetite and keeping market sentiment subdued," he added.

IT STOCKS LEAD THE FALL

IT stocks emerged as one of the biggest drags on the benchmark indices, with the Nifty IT index falling 3.24%. The sector has been under pressure amid concerns over higher US interest rates and the impact of a prolonged Middle East conflict on global growth and corporate technology spending.

Among the major IT stocks, HCLTech fell 4.55%, Infosys declined 4.43%, Tech Mahindra dropped 3.87% and TCS fell 2.26%. The weakness in IT added significantly to the broader market sell-off.

The Nifty MidSmall IT & Telecom index also declined 1.79%.

METAL STOCKS BUCK TREND

The broader market remained under pressure, although metal stocks bucked the overall trend. The Nifty Metal index gained 1.79%, making it the best-performing sectoral index of the day.

Among Sensex stocks, Adani Ports was the top gainer, rising 3.67%, followed by Tata Steel, which gained 2.42%. Trent rose 1.12%, while NTPC and Asian Paints gained 0.53% and 0.08%, respectively. PowerGrid was marginally higher by 0.02%.

On the other hand, HCLTech was the biggest Sensex loser, followed by Infosys and Tech Mahindra. Bajaj Finance fell 1.42%, UltraTech Cement declined 1.39%, Bharti Airtel dropped 1.14% and BEL fell 1.05%.

The weakness was visible across the broader market, although losses were smaller than those in the headline indices. The Nifty 100 fell 0.72%, while the Nifty 200 declined 0.68% and the Nifty 500 dropped 0.64%.

The Nifty Midcap 50 fell 0.55%, the Nifty Midcap 100 declined 0.51% and the Nifty Smallcap 100 lost 0.48%.

India VIX, a gauge of market volatility, rose 6.32% to 11.94, signalling increased nervousness among investors.

Sector-wise, the Nifty Realty index was among the biggest losers, falling 2.23%, while Financial Services 25/50 declined 1.23%. FMCG fell 0.96%, Private Bank 0.95%, Media 0.92%, Financial Services Ex-Bank 0.84% and Pharma 0.70%.

Healthcare declined 0.26%, Consumer Durables fell 0.58% and Oil & Gas slipped 0.14%. Nifty PSU Bank declined 0.51%, while Auto fell 0.44%. The Nifty Chemicals index dropped 0.23%.

The Nifty MidSmall Healthcare index fell 0.34%, while MidSmall Financial Services declined 0.55%.

With crude prices crossing $100 and IT stocks witnessing another sharp sell-off, investors remained cautious, with geopolitical uncertainty, interest-rate concerns and volatility in global markets continuing to weigh on sentiment.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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