Stock Market Under Pressure: Sensex, Nifty Extend Losses Amid Oil Price Surge

Sensex, Nifty Open Lower as Crude Oil Rally and Weak Earnings Weigh on Markets

Indian benchmark equity indices opened in the red on Thursday as a sharp rise in crude oil prices and disappointing corporate earnings dampened investor sentiment. Escalating tensions in the Middle East pushed Brent crude above $96 per barrel, raising concerns over inflation, India’s import bill and overall macroeconomic stability.

At around 9:30 am, the BSE Sensex was down 314.62 points (0.41%) at 76,440.43, while the NSE Nifty50 slipped 82.50 points (0.34%) to 23,913.75.

Crude Oil Surge Sparks Inflation Worries

Oil prices extended their rally after renewed geopolitical tensions in West Asia heightened fears of supply disruptions. Brent crude climbed 2.32% to $96.25 a barrel, while WTI crude rose 1.92% to $88.50.

The spike followed fresh US military strikes on Iran and attacks by Yemen’s Houthi rebels on oil tankers in the Red Sea, developments that have intensified concerns over global energy supplies.

For India, which imports the majority of its crude oil requirements, sustained high prices could increase inflationary pressures, widen the current account deficit, weaken the rupee and raise input costs for businesses.

Weak Corporate Earnings Add to Selling Pressure

Investor sentiment was also hit by disappointing June-quarter earnings from Dr Reddy’s Laboratories and Hindustan Petroleum Corporation Ltd (HPCL).

Dr Reddy’s shares fell nearly 4%, while HPCL declined about 5%, dragging the broader market lower.

Among Sensex constituents, Infosys led the losses, followed by Bajaj Finance, HDFC Bank, SBI, NTPC, Reliance Industries, Tata Steel and Tech Mahindra.

On the positive side, Eternal, Trent and Mahindra & Mahindra (M&M) traded in the green, offering limited support to the indices.

Pharma, IT and Realty Stocks Underperform

Selling pressure was visible across several sectors, with Nifty Pharma, Nifty IT and Nifty Realty emerging as the biggest laggards. Financial stocks also remained weak, as both private and public sector banking indices traded lower.

The broader market mirrored the cautious sentiment, with the Nifty Smallcap 100, Nifty Midcap 100 and Nifty 500 all slipping in early trade.

However, a few sectors bucked the trend. Nifty Metal, Nifty Auto and Nifty Media posted modest gains, supported by selective buying.

Meanwhile, India VIX, the market’s volatility gauge, edged slightly higher to 13.31, reflecting continued investor caution amid geopolitical uncertainty.

Long-Term Opportunity Amid Short-Term Volatility

Despite the near-term headwinds, market experts believe the current correction could offer attractive entry points for long-term investors.

According to Dr V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, elevated crude prices are likely to keep markets under pressure in the short run. However, he believes quality stocks—particularly in the banking sector, backed by strong credit growth and healthy asset quality—remain fundamentally attractive. He also pointed to robust earnings from consumer-focused digital companies as a sign that India’s long-term growth story remains intact despite the current volatility.