India's Sensex and Nifty 50 fell to multi-year lows on Thursday as a sharp jump in crude oil prices followed the Reserve Bank of India's policy shift. Oil climbed 4% on West Asia supply fears while the rupee slid toward 97 per dollar, adding pressure just as earnings season begins.
Benchmarks hit multi-year lows
The Sensex dropped 1.4% to 71,593.24 points, its lowest close since February 13, 2024, while the Nifty 50 fell 1.6% to 22,231.80 points, its weakest level in 18 months. ITC, InterGlobe Aviation, Power Grid, Bharat Electronics, Adani Ports and NTPC ranked among the heaviest laggards on the 30-stock index.
Analysts pointed to a mix of forces behind the slide: rising global crude oil prices, a persistent decline in the rupee, and growing caution ahead of the July-September earnings season.
Technical breakdown deepens the selloff
The Nifty breached its previous swing-low support at 22,217 as well as the April 2026 swing low of 22,182, according to Nandish Shah, deputy vice-president at HDFC Securities. According to Nandish Shah: "an intensification of the ongoing downtrend".
Ajit Mishra, senior vice-president of research at Religare Broking, said the market recovery seen between April and August has ended and further declines are likely. He cited crude at $103 per barrel and the rupee near 97 per dollar as factors, adding that the Nifty 50's near-term support lies between 21,700 and 22,000.
Oil surge and rate shift drive the losses
Brent crude futures rose $4.14 to $102.28 per barrel while West Texas Intermediate climbed $3.71 to $91.99 per barrel on Thursday, with no signs of easing in the West Asia conflict and growing worries over supply as attacks on shipping increase.
The losses extended Wednesday's reaction to the RBI's Monetary Policy Committee, which raised interest rates by 25 basis points and shifted its stance to "calibrated tightening" from neutral, pushing the rupee as low as 96.85 per dollar. Markets had priced in the interest rate move itself but were caught off guard by the stance change, leaving them unsure how far rates could rise from here.
Vinod Nair, head of research at Geojit Investments, said attention now turns to management commentary on demand sustainability and input cost absorption during the Q2 earnings season, which will shape near-term direction. Asian peers also declined Thursday: Japan's Nikkei 225 fell nearly 1.13%, South Korea's KOSPI dropped 2.26%, and Hong Kong's Hang Seng lost 1.4%.
Source: The Hindu
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