Indian equity benchmark indices extended their losing streak for a fourth straight session on Tuesday, with both the BSE Sensex and Nifty 50 plunging nearly 2 per cent amid rising crude oil prices, continued geopolitical uncertainty in West Asia, and persistent foreign fund outflows that severely dented investor confidence.
The broader market mood remained weak throughout the session as investors reacted nervously to escalating tensions in the Middle East, a sharply weakening rupee, and concerns over inflationary pressures caused by surging global oil prices.
The 30-share BSE Sensex tumbled 1,456.04 points, or 1.92 per cent, to close at 74,559.24. During intraday trade, the benchmark had slumped as much as 1,565.78 points, or 2 per cent, to hit a low of 74,449.50. Similarly, the 50-share NSE Nifty declined by 436.30 points, or 1.83 per cent, ending the day at 23,379.55.
Market breadth remained heavily negative on the Bombay Stock Exchange, where 3,412 stocks ended lower, only 869 advanced, and 129 remained unchanged.
Also read: Gold, silver jump as rupee slides to record low
Vinod Nair, Head of Research at Geojit Investments Limited, said domestic markets remained under pressure due to a combination of factors, including the rupee falling to record lows, rising crude oil prices linked to the West Asia crisis, and continued selling by foreign institutional investors.
He noted that the decline was broad-based, with information technology and real estate stocks among the worst hit. IT shares, in particular, came under pressure because of growing concerns over artificial intelligence-driven pricing pressure and potential disruptions caused by rapid enterprise adoption initiatives from OpenAI.
Over the last four trading sessions, the Sensex has now fallen by 3,399.28 points, or 4.36 per cent, while the Nifty has shed 951.4 points, or 3.91 per cent. Among the biggest losers in the Sensex pack were Tech Mahindra, Adani Ports and Special Economic Zone, HCL Technologies, Tata Consultancy Services, Titan Company, and Bharat Electronics Limited. State Bank of India was the lone gainer among Sensex constituents.
The sell-off was equally severe in the broader markets. The BSE MidCap Select index dropped 2.92 per cent, while the SmallCap Select index declined 2.73 per cent.
Sectorally, the realty index suffered the steepest losses, plunging 4.22 per cent. Other major losers included Focused IT, which declined 3.61 per cent, services stocks down 3.51 per cent, IT stocks falling 3.37 per cent, consumer durables slipping 3.35 per cent, and industrial stocks declining 3 per cent.
Meanwhile, global crude oil prices continued to climb sharply. Brent Crude rose 2.75 per cent to trade at USD 107.1 per barrel, intensifying concerns over inflation and India’s import bill.
The Indian rupee also weakened significantly, depreciating by 35 paise to settle at a record low of 95.63 against the US dollar. Hariprasad K, Research Analyst and Founder of Livelong Wealth, said the current market decline appears to be more than just routine profit booking and reflects a broader “confidence shock” among investors.
According to him, market participants are increasingly interpreting recent policy messaging and austerity-focused commentary as signs that policymakers may be bracing for a more difficult macroeconomic environment in the coming months.
He added that Indian equities are currently facing a “triple hit” from elevated crude oil prices hovering around USD 105–107 per barrel, a sharply weakening rupee, and sustained aggressive selling by foreign institutional investors.
Investor concerns also deepened after US President Donald Trump remarked on Monday that the ceasefire with Iran was at its “weakest” and on “massive life support” following Tehran’s rejection of Washington’s latest peace proposal aimed at ending the prolonged conflict. Foreign Institutional Investors continued to remain net sellers, offloading equities worth Rs 8,437.56 crore on Monday, according to exchange data.
Across Asia, stock markets ended mixed. South Korea’s Kospi, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng index closed lower, while Japan’s Nikkei 225 finished in positive territory.
European markets were also trading in the red during afternoon trade, even as US markets had ended higher on Monday.
In the previous session on Monday, the Sensex had already plunged 1,312.91 points, or 1.70 per cent, to settle at 76,015.28, while the Nifty had declined 360.30 points, or 1.49 per cent, to close at 23,815.85.
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