The NIFTY50 is on track for its worst annual performance in 15 years, with the index down nearly 10% so far this year - the last time it posted a double-digit annual decline was in 2011 when it plunged 25%. According to CNBC TV18, the benchmark index has lost nearly 2,700 points, or 10.3%, since the start of the year, with around 60% of its constituents trading in the red. The index has extended its decline for a third consecutive session on Wednesday, hitting a three-month low of 23,431.50 as renewed tensions in West Asia pushed Brent crude back to $100 a barrel for the first time since July. The sell-off has pushed the NIFTY50 into oversold territory on the Relative Strength Index (RSI), which stood at 26.4 — its lowest level since March 13, 2026.
HDFC Bank and Infosys alone account for more than half of the NIFTY50's decline, with HDFC Bank contributing more than 1,000 points to the 2,698-point fall since the beginning of the year, while Infosys has contributed another 441 points. As reported by CNBC TV18, Reliance Industries was the next biggest drag, contributing 424 points to the index's decline, followed by ITC and Tata Consultancy Services (TCS), which contributed 297 points and 220 points, respectively. Shares of HDFC Bank fell another 2.3% on Wednesday to close at ₹687.10 on the NSE, their lowest level since July 2022. Among stocks that have gained index weight, ICICI Bank's weightage has risen by 1.3 percentage points to 9.3%, while Titan Company's weight has increased by half a percentage point to 1.9%.
Financial Services continues to carry the highest weight in the NIFTY50 at 36.5%, followed by Oil & Gas and Information Technology at 9.5% and 8.5%, respectively. However, the prolonged sell-off in IT stocks has dragged down the sector's weight in the index. The Nifty IT index — the worst-performing sectoral index so far this year — has plunged 24%, with Wipro and Infosys leading the declines among NIFTY50 constituents, falling around 36% each. According to CNBC TV18, Tata Consultancy Services has declined 31%, while HCL Technologies has fallen 24% over the same period. Nifty Metal emerged as the top-gaining sector with 1.4% growth, followed by Nifty Financial Services up 0.8% and Nifty Private Bank gaining 0.3%. Major sectoral benchmark indices faced pressure with Nifty Auto declining 4%, Nifty Consumer Durables down 2.6%, Nifty Media losing 2.3%, and Nifty Healthcare dropping 2.3%.
Global crude oil prices surged nearly 9% over the last five sessions to a high of $97.62 per barrel due to escalations between the United States and Iran in West Asia. According to The Economic Times, both sides carried out several missile and drone attacks against strategic military targets, taking turns to retaliate against each other amid America's larger plan of economic warfare against Iran. Renewed tensions in West Asia pushed Brent crude back to $100 a barrel for the first time since July, creating supply chain risks and higher input cost potential for Indian companies. However, November Brent crude futures contract came off highs and traded 0.4% lower at $95.13 per barrel at 1659 IST, as reported by Kotak Securities.
Foreign institutional investors (FIIs) sold ₹3,111.94 crore worth of assets on Friday's trading session, while domestic institutional investors (DIIs) purchased ₹8,930.12 crore worth of assets. According to The Economic Times, foreign portfolio investors (FPIs) have been net sellers in emerging markets like India due to higher risk sentiment amid the rebound in global crude oil prices. However, MSCI's index rebalancing coming into effect from September 1 resulted in major inflows from passive funds and ETFs, providing some support to the market. Technical analysts suggest the NIFTY50 has multiple supports in the 23600–23800 spot zone, while immediate resistance is placed around the 24000 spot level. Crossing and sustaining above 24000 would be a positive development that could lead the index towards 24200, as noted by Globe Capital Market.
