Sensex Sinks 1,045 Points, Nifty Hits 2026 Low as Oil Crosses $104

The Indian stock markets plunged as escalating crude oil prices, ongoing foreign fund withdrawals, and apprehensions of extended high interest rates prompted widespread selling. The benchmark Sensex plummeted 1,045.46 points, or 1.44%, to conclude at 71,593.24, marking its second consecutive decline. It dipped to an intraday low of 71,327.75. Meanwhile, the Nifty declined 371.25 points, or 1.64%, to conclude at 22,231.80, marking its weakest level in 2026. Its intraday low of 22,179.90 was a record low for the year.

Rising crude oil costs renewed fears of inflation, economic stagnation, and reduced corporate profitability. Brent crude surged 4% and breached $104 per barrel, exacerbating concerns over inflation and economic growth. The increased energy expenses prompted investors to worry about tighter domestic and global monetary conditions, limiting optimism for a market rebound.

Foreign investors' exits further dampened confidence, hindering a market resurgence. The confluence of pricey oil and heightened borrowing costs focused investors on the potential strain on company margins and future earnings. Losses were widespread, with the Nifty Metal sector suffering the most significant decline and the IT sector showing relative resilience.

Selling permeated all sectors, with several major stocks suffering losses. However, Tech Mahindra, Axis Bank, and Infosys were the sole gainers among Sensex constituents. ITC, IndiGo, Power Grid Corporation, and Bharat Electronics plummeted by over 3% each. NTPC, Reliance Industries, and Maruti Suzuki also ranked among the major decliners.

The Nifty MidCap index slipped 2.53%, and the Nifty SmallCap index declined 2.34%, reflecting heightened investor risk-averse sentiment. The Sensex crashed 1,230 points, wiping out ₹10.42 lakh crore of market value as multiple factors triggered the market turmoil. Nifty support broke below the key psychological 22,000 level, with resistance now at 22,400 and 22,600.

Analysts now focus on Q2 results, anticipating that company earnings commentary on demand strength and the capacity to absorb higher input costs will determine the market's trajectory.