Indian equity markets came under heavy selling pressure on Thursday as surging crude oil prices, concerns over prolonged high interest rates and continued foreign fund outflows weighed on investor sentiment.
Mumbai, Oct 2026 : Indian equity benchmarks suffered a sharp sell-off on Thursday, with the Sensex plunging more than 1,000 points and the Nifty touching its lowest level of 2026, as a steep rise in global crude oil prices and concerns over prolonged tight monetary conditions triggered widespread risk aversion.
Brent crude surged around 4 per cent to cross the $104-per-barrel mark, raising fresh concerns over persistent inflationary pressures, economic growth and corporate profitability. The sharp rise in oil prices also fuelled expectations that interest rates could remain elevated for longer than previously anticipated.
The benchmark Sensex declined 1,045.46 points, or 1.44 per cent, to close at 71,593.24, extending its losses for a second consecutive session. During the trading session, the index touched an intra-day low of 71,327.75.
The Nifty also ended sharply lower, falling 371.25 points, or 1.64 per cent, to settle at 22,231.80. The index slipped to an intra-day low of 22,179.90, its lowest level so far in 2026.
Market watchers said the technical structure of the Nifty had weakened significantly after the index closed below its monthly 50-day simple moving average.
“Technically, the Nifty closed below its monthly 50-SMA, confirming deterioration in the medium-term price structure. It also broke the 22,550–22,600 and 22,400 support zones, placing the psychological 22,000 level in focus,” they said.
Analysts added that any recovery could face resistance around the 22,400 and 22,600 levels.
Investor sentiment was further hurt by concerns that domestic and global interest rates may remain high for longer. Elevated borrowing costs could weigh on economic activity and corporate earnings, while higher crude prices could add to inflationary pressures.
The weakness was broad-based, with only a few stocks managing to buck the selling trend. Among the 30 Sensex constituents, Tech Mahindra, Axis Bank and Infosys were the only gainers.
On the losing side, ITC, IndiGo, Power Grid Corporation and Bharat Electronics declined more than 3 per cent each. NTPC, Reliance Industries and Maruti Suzuki were also among the major laggards.
Sectoral selling was particularly intense in metal stocks, making the Nifty Metal index the biggest loser of the day. In contrast, the Nifty IT index showed relative resilience and outperformed the broader market.
The broader market also came under pressure as investors turned increasingly risk-averse. The Nifty MidCap index fell 2.53 per cent, while the Nifty SmallCap index declined 2.34 per cent, indicating that selling pressure extended beyond large-cap stocks.
With global oil prices remaining elevated and foreign fund outflows continuing to weigh on sentiment, investors are now turning their attention to the upcoming Q2 earnings season.
“Looking ahead, the market focus shifts to the Q2 earnings season, where management commentary on demand sustainability and input cost absorption will provide critical near-term direction,” market watchers said.
The earnings season is expected to provide investors with further clues on corporate profitability, demand conditions and the ability of companies to absorb higher input costs amid an uncertain global economic environment.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
