Sensex Plunges Over 900 Points As Crude Oil Crosses $100, Weak Earnings Hurt Sentiment

Indian benchmark indices remained under heavy pressure on Friday as a combination of surging crude oil prices, weak global market cues and disappointing corporate earnings triggered broad-based selling across Dalal Street.

The BSE Sensex plunged over 900 points, or 1.18%, to 75,474, while the NSE Nifty50 declined over 250 points, or over 1%, to 23,606.

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Earlier in the session, the Sensex had already fallen over 500 points, reflecting cautious investor sentiment.

The biggest concern for markets was the sharp rise in crude oil prices. Brent crude surged above the crucial $100-per-barrel mark to $100.64, while West Texas Intermediate (WTI) crude traded near $92 per barrel following fresh attacks on Saudi oil tankers, raising fears of supply disruptions in the Middle East.

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Higher crude prices pose a major challenge for India, which depends heavily on oil imports. A sustained rise in energy prices could increase inflation, widen the trade deficit, put pressure on the rupee and impact corporate margins.

Global market weakness also impacted domestic sentiment. US markets ended sharply lower after disappointing earnings from major technology companies. The Dow Jones declined 1%, the S&P 500 fell 1.2%, and the Nasdaq dropped 2.2%.

Investor concerns increased after Alphabet and Tesla announced higher artificial intelligence-related investments without immediate improvement in cash flows.

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Tesla shares fell around 14%, while Alphabet declined nearly 7% after increasing its AI spending plans by $15 billion.

Domestic earnings also weighed on sentiment. Infosys shares declined after weaker-than-expected quarterly results, while IndiGo faced selling pressure following its earnings announcement.

The broader market also remained weak, with the Nifty Smallcap 100 falling nearly 1% and mid-cap indices trading lower.

India VIX, the market volatility gauge, jumped nearly 7%, indicating heightened investor uncertainty.

Sector-wise, realty, auto and metal stocks led the decline, while financial services, oil and gas, private banks and PSU banks also traded lower.

FMCG and IT stocks managed to remain relatively resilient amid the broader market sell-off.

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