Indian stock markets ended sharply lower on Tuesday, with the BSE Sensex falling 777.94 points (1.04%) to close at 74,003.82, while the NSE Nifty dropped 279.50 points (1.19%) to 23,118.60—its lowest close since April 6. The selloff was driven by surging crude oil prices, elevated global bond yields, rate hike fears, and weak global market sentiment.
Markets had opened higher, with the Nifty trading near 23,495 and the Sensex above 75,100, but selling pressure intensified later in the session. The Sensex settled at a three-month low.
Oil Prices and Rate Hike Fears Weigh on Sentiment
Brent crude traded above USD 107 per barrel during the session, while WTI crude remained above USD 102. India, a major crude importer, remains highly sensitive to energy price spikes. Higher oil prices raise import costs, fuel inflation, and put pressure on the rupee, which weakened against the U.S. dollar.
Vinod Nair, Head of Research at Geojit Investments Limited, said, “Domestic markets remained under pressure, extending their recent correction as elevated crude oil prices and rising global bond yields weighed on sentiment.” He added that expectations of tighter monetary policy also kept investors cautious, with U.S. Treasury yields near multi-year highs.
Bharat Electronics Leads Losses; IT Stocks Buck Trend
Bharat Electronics was the biggest loser among Sensex stocks, falling about 6%. Other laggards included InterGlobe Aviation, Titan, Bajaj Finserv, Adani Ports, Mahindra & Mahindra, and State Bank of India. Selling spread across banking, auto, energy, and metal sectors.
However, information technology stocks rallied. HCL Technologies rose 3.98%, Infosys gained 3.64%, Tech Mahindra advanced 2.31%, and Tata Consultancy Services climbed 2.18%. According to Nair, IT stocks benefited from recent comments suggesting slower development of advanced AI, easing concerns about disruption to traditional tech services.
Global Markets Add Pressure
Asian markets ended lower: South Korea’s Kospi, Japan’s Nikkei 225, China’s Shanghai Composite, and Hong Kong’s Hang Seng all closed in negative territory. European markets traded lower, while U.S. stocks ended Monday with losses.
Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, commented, “Indian equities suffered a sharp reversal on Tuesday, surrendering their opening gains as Brent crude hovered near USD 107.40 a barrel, US bond yields remained elevated and investors adopted a cautious stance ahead of the Federal Reserve’s policy decision.”
Foreign institutional investors sold shares worth Rs 930.90 crore on Friday, according to exchange data. The Indian equity market was closed Monday for Ganesh Chaturthi.
Going forward, investors will track crude oil prices, the Federal Reserve’s policy decision, global bond yields, foreign fund flows, and geopolitical developments for market direction.