Sensex tumbles over 400 pts, Nifty below 23,900 with Brent crossing $100/barrel mark; all sectors in red

MUMBAI: Indian indices continued to extend its losses for the fifth consecutive session, with the Sensex falling over 400 points and the Nifty holding below 23,900 amid a sustained rally in oil prices along with persistent FII outflows and subdued global cues.

Both the indices opened with a gap-down on Friday with Sensex opening at 75,708.19 as against the previous close of 76,391.39 and Nifty at 23,666.35 as against the previous close of 23,869.60. The Sensex was trading at around 75,984.17, down 407.22 points or 0.53 per cent while Nifty was trading at around 23,736.65, down 132.95 points or 0.56 per cent at the time of reporting.

Sectorally, almost all indices traded in the red while Nifty Auto and Media were trading in the positive territory, inching 0.69 and 0.22 per cent. At the same time, all broad market indices were trading in the red. On BSE, HCL Tech, TCS, and Tech Mahindra were the top gainers while Eternal, Indi Go, Bharti Airtel, Maruti, LT, Infosys, Bajaj Finance, HDFC Bank, Kotak Bank, Power Grid, SBI, ITC among others were the top losers.

Brent crude had crossed the $100/barrel mark for the first time since late May, and was trading at around $100.67 per barrel while crude oil was trading around $91.95 per barrel at the time of reporting.

Market and banking expert Ajay Bagga noted, “India is seeing a March 2026 like sell off in its markets as the surging oil prices transmit an inflationary potential and a supply disruption as well as margin compression to an oil importing country like India. Markets said, lets sell first and think later”.

“Heavily oversold market, will see a bounce back but will need a geopolitical catalyst to do that. Waiting for the weekend. Trump has promised a massive attack on Iran. We will have to wait and see if its rhetoric or more ineffective bombings will happen, even though it is clear that those are serving no purpose”, he said.

Devarsh Vakil, HSL Prime Research said, “Nifty has fallen below its key averages and headed towards the 23645-23500 zone, while 24,000-24,100 is likely to remain a strong resistance zone”, he noted.

Vakil further added, “Oil prices spiked after Houthi forces struck Saudi tankers in the Red Sea, opening a new front alongside ongoing disruptions in the Strait of Hormuz. Brent crude topped $100 a barrel for the first time since late May. Crude is now up sharply both on the month and year-to-date, as continued US strikes on Iran and collapsing ceasefire hopes reignite fears of persistent inflation. The Indian rupee remains under heavy pressure due to elevated international oil prices, which threaten to expand India’s trade deficit and accelerate national inflation”.

Market analyst Vipin Dixena noted, “Market sentiment is expected to remain cautious as the sharp rise in Brent crude prices, driven by escalating geopolitical tensions in West Asia, along with persistent FII outflows and subdued global cues, continues to weigh on equities. Although the ongoing earnings season is providing stock-specific opportunities”.

According to the analyst, Nifty has entered a technically weak phase after decisively breaking below the 23,850 support zone and continuing to trade beneath its 50-period EMA. “Momentum indicators remain bearish with the RSI near 25 suggests the market is oversold and may witness intermittent short-covering rallies. However, unless the index reclaims the 24,000-24,020 zone on a closing basis, any pullback is likely to face selling pressure. The short-term outlook remains negative, with the 23,650-23,700 zone emerging as the next critical support to watch”, he said. (ANI)