The benchmark indices extended losses for a second straight session on April 23, weighed down by weakness in financials, rising crude oil prices and global uncertainty.
The Sensex fell 852 points, or 1.09 percent, to close at 77,664, while the Nifty 50 declined 205 points, or 0.84 percent, to settle at 24,173. Over two sessions, the Sensex has dropped 1,609 points, or about 2 percent, with the Nifty also losing nearly 2 percent.
Broader markets were not spared. The Nifty Midcap 100 and Smallcap 100 indices slipped 0.41 percent and 0.67 percent respectively. The total market capitalisation of BSE-listed firms fell by about ₹3 lakh-crore in a single session to just above ₹466 lakh-crore.
Among stocks, Trent, Shriram Finance and Tech Mahindra were the top laggards in the Nifty, while Dr Reddy’s Laboratories, Cipla and Jio Financial Services posted gains.
Banking and financial stocks, which carry significant weight in the indices, led the decline. The Nifty PSU Bank index dropped 2.19 percent, while the Private Bank index fell 1.31 percent. The Nifty Bank and Financial Services indices declined 1.43 percent and 1.42 percent respectively, with HDFC Bank and ICICI Bank among the key drags. Auto stocks also came under pressure, with the Nifty Auto index falling 2.35 percent.
Brent crude climbed over $103 a barrel, rising about 2 percent amid fresh tensions between the US and Iran. Reports of tanker interceptions and fresh disruptions in the Strait of Hormuz have raised supply concerns. Higher crude prices typically weigh on India’s macro outlook and market sentiment.
Investors remain cautious amid uncertainty over the trajectory of the US-Iran conflict. Although a ceasefire has been extended, there is little clarity on its duration or the timeline for fresh talks. The prolonged tensions have heightened concerns about global growth and inflation.
Foreign institutional investors have turned net sellers again, offloading more than ₹5,000 crore worth of equities in the cash segment over the past three sessions. Selling in large-cap stocks has added pressure on the benchmarks, though selective buying in mid and small-cap stocks has offered some support to the broader market.
The Nifty is hovering near key technical levels, including the 61.8 percent Fibonacci retracement of the February–March decline. Analysts say a sustained move above 24,680 is needed to revive upward momentum, while a fall below 24,300 could trigger a deeper correction towards 23,860.
With geopolitical tensions, crude price volatility and FII flows dictating sentiment, markets are likely to remain volatile in the near term. Investors may continue to track global developments closely while focusing on stock-specific opportunities.
