The markets extended their losing streak to four sessions on Thursday, with the Sensex falling 570.59 points and the Nifty slipping below the 22,450 mark as investors remained cautious amid rising crude oil prices, higher global bond yields and sustained foreign selling.
The BSE Sensex closed at 71,909.70, down 570.59 points or 0.79 per cent. The NSE Nifty50 settled at 22,421.95, lower by 198.50 points or 0.88 per cent. Both indices recovered from their day’s lows after coming under heavier selling pressure during afternoon trade.
The sell-off erased about ₹4.28 lakh crore in market capitalisation of companies listed on the NSE, reflecting the broad pressure across equities. Market breadth remained weak, with most sectors ending in the red. The Nifty Auto index was among the biggest drags, while IT stocks provided some support.
Infosys emerged as the top Nifty50 gainer, rising 4.11 per cent to ₹1,035. HDFC Life Insurance, HDFC Bank and SBI Life Insurance were among the other stocks that ended higher. TCS and HCL Technologies also gained, helping the IT sector remain an exception in an otherwise weak market.
Bajaj Auto was the biggest loser, tumbling 7.62 per cent to ₹10,045. Maruti Suzuki and Shriram Finance were among the other major laggards. Mahindra & Mahindra, Tata Steel and Tata Motors Passenger Vehicles also faced heavy selling pressure during the session.
Auto stocks came under particular pressure after several automobile companies reported September sales numbers. Bajaj Auto’s total sales rose 5 per cent year-on-year to 5.38 lakh units, but the figure fell short of market expectations. Its domestic sales declined 9 per cent, while exports rose 32 per cent. The weaker-than-expected numbers triggered selling in the stock and weighed on the broader auto sector.
Mahindra & Mahindra also declined after reporting September sales that were slightly below expectations. Its total sales rose 15 per cent year-on-year, but tractor sales fell 21 per cent. Maruti Suzuki, Eicher Motors and Tata Motors Passenger Vehicles also moved lower.
The Nifty Auto index eventually closed about 3.5 per cent lower, making it the worst-performing major sectoral index. The Nifty Metal index also fell around 2.35 per cent. In contrast, the Nifty IT index gained 2.17 per cent, making it the only sectoral index to finish in positive territory.
IT stocks benefited from buying ahead of the second-quarter earnings season. Investors are closely watching the results of major technology companies for signs of demand, spending and the impact of artificial intelligence on the sector. Infosys led the gains, while TCS and HCL Technologies also advanced.
Global cues remained a major concern for investors. US Treasury yields climbed sharply, with the 10-year yield touching levels not seen in years. Higher bond yields can reduce the appeal of equities and increase pressure on emerging-market assets.
Crude oil prices also remained elevated, with Brent crude moving around the $100-a-barrel level. Higher oil prices are a concern for India because the country imports a large share of its crude requirement. Rising energy costs can increase inflationary pressure, widen the trade deficit and put pressure on the rupee.
The Indian currency weakened sharply during the session, adding to investor concerns. The rupee fell to a two-month low of around ₹96.31 against the US dollar, while foreign investors continued to withdraw money from Indian equities.
Foreign institutional investors sold Indian equities worth ₹10,148 crore on Wednesday, while domestic institutional investors bought shares worth ₹11,272 crore. Continued foreign outflows have remained one of the key factors weighing on the Indian stock market in recent weeks.
Thursday‘s fall also extended the market’s broader losing run. The Nifty has now recorded its eighth consecutive weekly decline, its longest such streak in 25 years. The index fell 3.1 per cent during the holiday-shortened week, while the Sensex declined 2.7 per cent.
The market is now entering a crucial period with investors watching global oil prices, bond yields, foreign fund flows and the upcoming corporate earnings season. The Reserve Bank of India’s policy outlook will also remain important as inflationary pressures and currency weakness continue to influence market sentiment.