Sensex, Nifty slide over 1 per cent as IT sell-off and oil surge weigh on markets

India’s benchmark indices, the BSE Sensex and Nifty 50, extended their losses in midday trade on Friday, pressured by rising crude oil prices, persistent foreign outflows and sharp declines in IT stocks.

By 12:33 pm, the Sensex had dropped 1,011 points, or 1.3 per cent, to 76,653, while the Nifty fell 283 points to 23,890, slipping further below the key 24,000 level. The downturn follows two consecutive sessions of decline, reflecting fragile investor sentiment.

A major drag on the markets was the continued rise in global oil prices. Brent crude hovered around $106 per barrel amid heightened tensions in the Middle East and concerns over potential disruptions in the Strait of Hormuz. Analysts said volatility in crude prices, driven by uncertainty surrounding US-Iran developments, remains a key factor influencing market direction.

Foreign institutional investors (FIIs) also continued to exert pressure, extending their selling streak for a fourth straight session with net outflows exceeding ₹3,200 crore on Thursday. Market experts warned that sustained foreign selling, combined with elevated oil prices and currency weakness, could weigh further on large-cap stocks.

The IT sector emerged as the worst performer, with stocks such as Infosys, TCS, HCLTech and Tech Mahindra registering steep losses. The Nifty IT index fell sharply, reflecting subdued guidance and continued pressure on the sector.

Global cues remained mixed. While US markets closed lower overnight amid geopolitical concerns and uneven earnings, sentiment saw limited improvement after reports of an extension of the Israel-Lebanon ceasefire. However, elevated oil prices and ongoing uncertainty continued to curb risk appetite.

Volatility indicators pointed to cautious investor positioning, with the India VIX rising to around 19.3. Analysts noted a lack of strong directional momentum, with immediate support for the Nifty seen near the 23,800 mark.

Selling pressure was broad-based across sectors, including pharma, FMCG and realty stocks. Market breadth remained weak, with declining shares significantly outnumbering advancing ones.

Among individual stocks, gains were limited, with Coal India and Bajaj Auto among the few to trade higher. On the downside, heavyweights such as Infosys led the losses, alongside several other large-cap names.

With geopolitical tensions persisting and macroeconomic uncertainties in play, analysts expect markets to remain volatile in the near term.

With IANS inputs