Indian equities trade lower at mid-session as auto stocks fall amid surging crude prices

Indian equity benchmarks remained sharply lower during mid-session trade on Wednesday, pressured by surging crude oil prices, elevated US Treasury yields, and broad-based selling across sectors. The Sensex slipped below the 76,500 mark for the first time since late July, extending its morning losses alongside the Nifty 50.

At 1:05 p.m., the Sensex traded at 76,427.27, down 517.01 points or 0.67 percent from its previous close of 76,944.28. The index had opened the session at 76,471.32. Meanwhile, the Nifty 50 stood at 23,865.75, down 190.05 points or 0.79 percent from its previous close of 24,055.80, after opening at 23,858.00.

Market breadth remained weak on the Bombay Stock Exchange (BSE), where 2,165 stocks declined against 1,601 advancing issues. Additionally, 145 stocks hit lower circuits and 100 touched 52-week lows. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that weakness was visible across broader Asian markets, with major regional indices trading in the red and registering declines between 1 percent and 4 percent.

The auto sector experienced the steepest losses of the session. Eicher Motors led the declines on the Nifty 50, falling 5.27 percent to ₹7,550.00 on volumes exceeding 7.19 lakh shares valued at ₹54,819.25 lakh. Bajaj Auto dropped 2.86 percent to ₹12,007.00, while Mahindra & Mahindra declined 2.54 percent to ₹3,176.10 on trades worth ₹55,031.94 lakh. Analysts noted that higher crude prices directly increase input costs for tyre and component manufacturers, squeezing profit margins across the sector.

Other crude-sensitive sectors also came under pressure. Aviation company IndiGo slid 2.16 percent to ₹4,943.00 due to resurfacing concerns over jet fuel costs, while Asian Paints fell 2.10 percent to ₹2,521.40.

Conversely, energy stocks bucked the downward trend, benefiting from the same crude price surge that weighed on consumer sectors. Coal India emerged as a top gainer, rising 3.55 percent to ₹415.85 with a trading volume of 2.84 crore shares valued at ₹1,18,615.68 lakh. NTPC added 1.76 percent to ₹329.70, while Adani Ports gained 1.42 percent, Power Grid rose 1.29 percent, and Adani Enterprises advanced 0.94 percent.

Commodities displayed volatility as MCX Crude Oil traded above ₹8,600 with a 0.78 percent gain, and WTI crude hovered near $90.70 after reaching an intraday high of $92.29. Precious metals faced downward pressure, with COMEX gold down 1.36 percent above $4,300 and MCX gold trading near ₹1,50,000. Ponmudi R, CEO of Enrich Money, warned that a sustained rise in crude prices could increase pressure on the currency and widen India’s import bill, though the rupee held steady near ₹94.95 against the dollar amid Reserve Bank of India intervention.

On the options front, market participants observed meaningful call writing across the 23,900 and 24,000 strikes. Technical indicators pointed to Nifty support at 23,700–23,720, with a break below potentially exposing the index to 23,550–23,570. Resistance was identified at 23,930–23,950, while the Sensex faced support at 75,900 and resistance at 76,700.

"Fluctuations in global crude oil prices and currency movements continue to exert immediate pressure on input-heavy sectors like automotive and aviation. For businesses, especially manufacturing and consumer-facing enterprises, managing supply chain costs and raw material exposure remains critical during periods of macroeconomic volatility. Investors and entrepreneurs should closely monitor these macroeconomic indicators as broader market sentiment influences capital allocation and operational planning." — Dr. Shishir Gupta, Founder & CEO, StartupLanes