Domestic benchmark indices ended sharply lower on Thursday as rising oil prices, weak global cues and persistent foreign investor selling kept pressure on equities.
The BSE Sensex fell 829.29 points, or 1.08%, to close at 76,034.42, while the Nifty 50 declined 227.70 points, or 0.95%, to settle at 23,639.15.
Markets remained volatile through the session, with the Nifty touching a low of 23,556.30 during the day before trimming some losses by the close.
Selling was seen across several heavyweight stocks, particularly in auto, banking and capital goods sectors.
AUTO, FINANCIAL STOCKS DRAG MARKETS
Auto stocks were among the biggest laggards. Mahindra & Mahindra dropped 4.39%, Maruti Suzuki fell 3.72%, while Eicher Motors declined nearly 4%.
Capital goods major Larsen & Toubro fell over 3%, while financial stocks such as Bajaj Finance, ICICI Bank, Axis Bank and Kotak Mahindra Bank also ended lower.
IT stocks traded mixed, with Infosys and TCS closing marginally lower, while Tech Mahindra ended with gains.
COAL INDIA SURGES 5%, POWER STOCKS GAIN
Despite the broader market weakness, some energy and utility stocks bucked the trend.
Coal India jumped 5.2%, emerging as the top gainer on the Nifty. NTPC rose nearly 3%, while Power Grid gained about 1.7%.
Shares of Jio Financial Services and Hindalco also ended with modest gains.
OIL PRICES, GLOBAL CUES WEIGH
Investor sentiment remained cautious amid rising geopolitical tensions in West Asia, which have pushed crude oil prices higher.
Higher oil prices are a concern for India, which imports the majority of its crude requirements, as they can increase inflationary pressures and widen the current account deficit.
Global market sentiment also remained fragile as investors reacted to geopolitical risks and uncertainty around interest rate trajectories.
FOREIGN INVESTOR SELLING CONTINUES
Persistent selling by foreign institutional investors (FIIs) has also been weighing on the market in recent sessions.
While domestic institutional investors have provided some support, it has not been enough to fully offset foreign outflows, keeping benchmarks under pressure.
Despite the recent volatility, analysts say market corrections are a normal part of the cycle, and long-term investors typically use such phases to gradually accumulate quality stocks.
