Indian stock markets closed sharply lower on Thursday as the BSE Sensex dropped 852 points to end at 77,664, while the NSE Nifty50 fell 205 points to close at 24,173, slipping below the important 24,200 level.
The selloff was broad-based, with heavy pressure seen in banking, IT, auto and consumer stocks. Among the top losers on the Sensex and Nifty were Infosys, HDFC Bank, Maruti Suzuki, Tata Motors and Axis Bank. These stocks saw strong selling as investors reduced exposure to economically sensitive sectors.
IT shares remained weak, with Infosys continuing to face pressure after concerns around global demand and slower technology spending. Banking stocks such as HDFC Bank and Axis Bank also dragged the market lower, while auto stocks like Maruti Suzuki and Tata Motors declined on fears that higher fuel prices could affect demand.
A major reason behind the weak sentiment was the sharp rise in global crude oil prices, which moved above the $100 per barrel mark. Higher oil prices are a concern for India because they can increase inflation, raise transport costs and put pressure on the rupee.
The rupee also weakened against the US dollar during the day, adding to investor worries. A weaker rupee increases import costs and can affect several sectors dependent on overseas raw materials.
Despite the broad weakness, a few defensive stocks managed to gain. Sun Pharma was among the top gainers, supported by buying interest in healthcare shares. Some other pharmaceutical counters also remained firm as investors looked for safer sectors during market volatility.
Broader markets were also under pressure, with many midcap and smallcap stocks ending in the red. Market breadth remained negative, showing that selling was spread across a wide range of shares.
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