Equity benchmarks extended losses for a second straight session on Thursday (April 23), with the Sensex falling 852 points to 77,664 and the Nifty declining 205 points to close at 24,173, slipping below the 24,200 mark amid broad-based selling led by financials, IT and auto stocks. According to The Hindu, the 30-share BSE Sensex tumbled 852.49 points, or 1.09%, to settle at 77,664, while during the day, it slumped 942.31 points, or 1.20%, to 77,574.18. Market breadth remained weak, with 34 stocks closing in red and 16 in green on NSE, while 25 stocks closed in red and 5 in green on BSE. The NIFTY50 closed over 205 points lower at 24,173 after trading between 24,134 and 24,310, with 2,037 stocks closing in red vs 1,255 in green out of 3,396 stocks that traded. As per ABP Live, the BSE Sensex plummeted more than 750 points and slipped near 77,750, while the NSE Nifty50 touched 24,150, after tanking a little over 200 points to start the trading session at 9:15 AM.
The latest market decline was primarily driven by escalating tensions in West Asia that have sparked caution among investors after Iran seized two cargo ships seeking to exit the Gulf via the vital global oil route and warned that the U.S. and Israel will not achieve their goals through bullying. According to The Hindu, the primary driver of today's decline remains the sharp escalation in geopolitical tensions in West Asia, with crude oil prices once again breaching the $100 per barrel mark amid stalled U.S.-Iran negotiations. This follows HSBC's earlier downgrade of Indian equities to 'underweight' from 'neutral' as it expects surging energy prices triggered by the Middle East war to threaten the durability of the country's earnings recovery. India now looks less attractive than North East Asian peers in the current macro setting, with the benchmark Nifty 50 and Sensex falling 6.7% and 7.9% so far this year - among the worst performing markets globally. HSBC expects oil and gas markets to remain tight through most of the June and September quarters, with consensus earnings forecasts for 2026 currently at 16% year-on-year growth expected to be revised lower.
According to Upstox, selling pressure remained widespread as all sectoral indices ended lower, barring Nifty Pharma, with Nifty PSU Bank and Auto indices emerging as the top laggards during the session. Pharma stocks bucked the trend, witnessing a sharp surge in an otherwise weak market, with Dr Reddy's Laboratories jumping 8.8% and Cipla rising 5.7%, while sugar stocks extended gains from the previous session, as Bajaj Hindusthan and Dhampur Sugar rose nearly 3% each. Among index movers, Trent was the top Nifty loser, closing 4.3% lower despite reporting strong Q4 results, while Shriram Finance declined 3.3%, Tech Mahindra fell 3.1%, Bajaj Finserv dropped 3.0%, and Infosys declined 2.9%. Among the gainers, Jio Financial Services rose 4.9%, Adani Enterprises gained 1.7%, and Coal India advanced 1.5%. Union Bank of India dropped over 8% after reporting net interest income below expectations, and Havells India declined 7% after reporting a mixed Q4 performance along with a cautious outlook.
The Indian rupee weakened past the 94 level against the US dollar amid simultaneous pressure from rising crude oil prices and dollar strength. As reported by ET Now, Dilip Parmar from HDFC Securities explained that "Driven by high hedging dollar demand and a broader shift toward safe-haven assets, the Indian rupee has weakened past the 94 level against the greenback. Central bank interventions failed to arrest the slide as a simultaneous rally in crude oil and the US dollar exerted additional downward pressure. In the near term, USDINR retains its bullish momentum, with support around 93.80 and resistance at 94.60." This currency weakness added to market concerns about India's import bill and contributed to the overall negative sentiment during Thursday's trading session.
Foreign funds continued their selling pressure in the Indian markets, with net outflows of ₹2,078 crore recorded on Wednesday, according to BSE data reported by The Times of India. On Thursday's session, Foreign Institutional Investors (FIIs) recorded outflows of approximately ₹2,078 crore, while Domestic Institutional Investors (DIIs) sold shares worth around ₹1,048 crore, marking a rare simultaneous selloff by both foreign and domestic institutions. This aggressive selling by foreign investors added to the market's downward pressure and contributed to the overall negative sentiment that characterized the trading session. India VIX, a key gauge of near-term market volatility, was trading at 18.30, up 4.38%, indicating growing nervousness among investors. The Economic Times reports that foreign portfolio investors have already offloaded $18.5 billion of Indian stocks in 2026, after selling equities worth $18.9 billion last year, with foreign investor concerns including rupee depreciation risks if oil prices stay elevated.
