Indian Equity Benchmarks Trade Lower as Crude Oil Prices Rise and Broad Market Bleeds

Equity benchmarks recovered partially from their opening lows by midday on Thursday but remained firmly in the red for the third consecutive session. The market downturn was driven by surging crude oil prices, ongoing geopolitical uncertainty, and broad-based selling across multiple sectors.

At 12:56 pm, the BSE Sensex was trading down 223.94 points, or 0.30 per cent, at 73,485.75, compared to its previous close of 73,709.69. Similarly, the NSE Nifty 50 stood at 22,720.05, losing 91.30 points or 0.40 per cent from its Wednesday close of 22,811.35.

Market breadth on the BSE reflected significant negative sentiment. Out of 4,392 stocks traded during the session, 2,661 declined while only 1,507 advanced, and 224 remained unchanged. Highlighting the depth of the selling pressure, a total of 432 stocks hit fresh 52-week lows, contrasted with just 53 stocks touching 52-week highs. Additionally, 277 stocks were locked in the lower circuit against 107 in the upper circuit.

Despite the broader downturn, a handful of Nifty 50 stocks managed to post gains by the afternoon. Bajaj Finance led the performers with a 1.47 per cent increase to ₹939.60, followed by Bajaj Auto up 1.26 per cent at ₹10,199. Other gainers included Larsen & Toubro, Bharti Airtel, and UltraTech Cement. Conversely, the top laggards on the index included Nestle India, which fell 2.19 per cent to ₹1,197.10, Tech Mahindra, HDFC Bank, Coal India, and HDFC Life. Reliance Industries, HDFC Bank, and Infosys emerged as the primary negative contributors to the Nifty by index weight.

All major sectoral indices traded in negative territory by midday, with Nifty FMCG and IT recording the steepest declines. IT stocks faced selling pressure following a strong performance in the previous session. Banking stocks, particularly HDFC Bank, also encountered renewed downward pressure.

In the commodities market, MCX crude oil rose 1.43 per cent to trade around ₹9,340, supported by geopolitical reports involving Houthi attacks on a Saudi Aramco oilfield and diplomatic withdrawals in Saudi Arabia. WTI crude neared $98.50, and Brent held above $110 a barrel. Precious metals faced headwinds due to elevated yields, with COMEX gold falling 0.90 per cent to around $4,110 and COMEX silver dropping 2.09 per cent to $56.50. Domestically, MCX gold traded at ₹144,600 and MCX silver dropped to ₹205,160.

Meanwhile, the Indian rupee extended its winning streak to eight sessions, with USD/INR slipping to 94.34, supported by dollar inflows from the Jio Platforms IPO and intervention by the Reserve Bank of India.

Brokerages noted that meaningful call writing was observed at the 22,700 and 22,800 strikes for the Nifty, while the 22,600 and 22,500 puts carried substantial open interest. Analysts identified the 22,520–22,500 zone as a crucial support level and 22,750–22,770 as immediate resistance. Upcoming quarterly results from companies including Adani Enterprises, Colgate, Havells, HPCL, and Swiggy are expected to provide selective triggers for individual stocks.

"The current market correction highlights the sensitivity of Indian equities to external macro factors, particularly crude oil prices and global geopolitical developments. For businesses and entrepreneurs, such periods of broad-based selling and cautious investor sentiment reinforce the need for strong balance sheet management and operational resilience. While near-term volatility is likely to persist until key resistance levels are reclaimed, fundamentally sound companies continue to navigate these market headwinds effectively." — Dr. Shishir Gupta, Founder & CEO, StartupLanes