Sensex Crashes Over 1%, Nifty Down To 23,956.75 Amid Risk-Off Sentiments Due To Rise In Oil Prices

Indian stock markets continued to trade in red as geopolitical tensions in West Asia remained a key overhang. Investors remained cautious despite extension in Israel-Lebanon ceasefire amid heightened tensions between US and Iran.

The benchmark Nifty fell 216.3 points to 23,956.75 while the Sensex crashed 779.86 points to 76,882.58. Rise in crude oil prices further dampened investor sentiment as global trade concerns remained elevated.

US President Donald Trump after announcing a three-week extension to the ceasefire in Lebanon said that he hoped to host Israeli and Lebanese leaders in “in the near future”. He also said that the US is under no pressure to end the war with Iran. “I have all the time in the World, but Iran doesn’t – The clock is ticking!” Trump wrote on Truth Social.

Brent crude oil futures jumped above $106 per barrel, rising nearly 18 per cent this week as the continued closure of the Strait of Hormuz added to supply concerns amid pause in peace negotiations between US and Iran. The Indian rupee also extended its fall to 94.28 against the US dollar on April 24.

“Geopolitical tensions remained a key overhang as the Iran conflict escalated into a naval standoff with rising risks around the Strait of Hormuz, keeping global trade concerns elevated. However, in a marginally positive development, Israel and Lebanon agreed to extend their ceasefire by three weeks following discussions with US officials, indicating limited de- escalation in the broader region,” Bajaj Broking said in a note.

Losses in broader markets were limited compared to benchmark indices. The Nifty Smallcap index fell around 0.3 per cent, while the Nifty Midcap traded nearly 0.4 per cent down. Meanwhile, the Nifty LargeMidcap indices fell around 0.5-0.6 per cent during the session.

Despite a rise in oil prices, the auto sector outperformed the benchmarks in sectoral indices, trading 0.11 per cent higher. Among sectoral indices, chemical stocks gained the most, trading 0.2 per cent up. Meanwhile, IT stocks led the losses, falling over 3 per cent. This was followed by the telecom sector, trading nearly 2 per cent down, and pharmaceutical stocks down nearly 1 per cent.

Coal India was the top gainer in Nifty 50, trading 1.7 per cent higher at Rs. 458.25 after consecutive losses in the past sessions. Mahindra and Mahindra shares were also among the top gainers in Nifty, along with Bajaj Auto, Grasim Industries, and Max Health.

Meanwhile, shares of Infosys fell the most in the Nifty 50 index, trading 4.4 per cent down, after the company announced its quarterly earnings. The company reported around a 1.6 per cent fall in revenue in constant currency for the March quarter, the steepest fall in four quarters. Shares of Tech Mahindra, TCS, Sun Pharma, and HCL Technologies were also among the top losers in Nifty.