Sensex, Nifty Extend Losses Amid Oil Price Surge and Weak Global Cues

Indian equity benchmark indices declined sharply in early trade on Thursday, extending losses from the previous session, as crude oil prices , geopolitical tensions , and continued foreign fund outflows weighed heavily on investor sentiment.

The BSE Sensex fell over 500 points at the opening bell, while the NSE Nifty 50 slipped below the 24,250 level, reflecting weak market sentiment and rising global uncertainty . As the session progressed, losses deepened, with broad-based selling seen across sectors.

The sharp rise in oil prices has emerged as the primary trigger for the market downturn. Brent crude climbed above $100 per barrel and traded in the $103–106 range, driven by stalled US–Iran negotiations and continued disruptions in the Strait of Hormuz. The situation has intensified following reports of naval confrontations and shipping disruptions , raising concerns over global supply and energy security .

The surge in crude prices has heightened worries for India, which relies heavily on oil imports. A sustained increase in oil prices could push up inflation , widen the current account deficit , and exert pressure on the rupee. The Indian currency has already weakened against the US dollar in recent sessions, reflecting rising import costs and capital outflows .

Foreign Institutional Investors continued to remain net sellers, offloading equities worth Rs 2,078.36 crore on Wednesday, according to exchange data. Persistent FII selling has added to the pressure on domestic equities and contributed to overall market volatility .

Global cues also remained weak, with major Asian markets such as Nikkei 225, Kospi, Shanghai Composite and Hang Seng Index trading lower. Investors remained cautious amid weak Asian markets and fears of a global slowdown .

Market participants are increasingly concerned that prolonged tensions in West Asia could keep oil prices elevated, posing risks to economic growth and corporate earnings . Analysts have warned that if the situation worsens, crude prices could rise further, deepening the economic risk .

The latest decline follows a sharp fall in the previous session, when the Sensex dropped 756.84 points to close at 78,516.49, while the Nifty fell 198.50 points to settle at 24,378.10. The continued weakness indicates that markets are likely to remain volatile in the near term amid persistent bearish trend .

Investors are expected to closely monitor developments in the US–Iran situation, movements in crude oil prices and trends in foreign fund flows for further direction, as uncertainty continues to dominate the investment outlook .