Indian stock markets remained under heavy selling pressure on Tuesday, September 29, as rising crude oil prices, a weaker rupee and continued foreign investor selling weighed on sentiment. The benchmark indices extended their recent decline, with the Sensex falling more than 600 points and the Nifty 50 slipping below the 22,600 level.
The sell-off was broad-based, with banking and financial stocks among the biggest drags on the market. Bajaj Finance, HDFC Bank, Kotak Mahindra Bank, Reliance Industries, Asian Paints and Infosys were among the key Sensex losers in early trade.
On the Nifty 50, Tata Motors Passenger Vehicles was the top loser, falling 3.05%. Bajaj Finance declined 1.59%, while Jio Financial Services dropped 1.43%. HDFC Bank was down 1.38% and Trent slipped 1.32%, adding to the pressure on the benchmark index.
Pharma and healthcare stocks offered some relief. Dr Reddy’s Laboratories emerged as the top Nifty gainer, rising 1.61%, followed by Cipla, which gained 0.87%. Apollo Hospitals advanced 0.34%, while Tech Mahindra and Coal India added 0.32% and 0.21%, respectively.
The sharp decline in equities came against a backdrop of rising crude oil prices. Brent crude was trading around $106.86 a barrel, extending its gains from the previous session. Investors remained cautious over the possibility of supply disruptions from the Middle East amid continuing tensions involving the US and Iran.
Crude oil is particularly important for the Indian economy because the country depends heavily on imports to meet its energy requirements. A sustained rise in oil prices can increase the country’s import bill and put pressure on the current account and inflation outlook. Higher crude prices can also weigh on corporate margins in sectors that are dependent on fuel and transportation costs.
The impact was visible in currency markets as well. The Indian rupee opened at 96.03 against the US dollar and weakened further to 96.13 during early trading. It had closed at 95.97 on Monday. The combination of expensive crude oil and foreign fund outflows has kept the rupee under pressure.
Foreign institutional investors have remained cautious towards Indian equities. FIIs sold shares worth ₹3,693.93 crore on Friday, adding to concerns about continued overseas selling. Persistent FII outflows can increase pressure on domestic benchmarks, particularly when global risk appetite is weak.
Global market cues also remained mixed. Asian equities largely traded lower, with Japan’s Nikkei 225, South Korea’s KOSPI and Hong Kong’s Hang Seng under pressure. The Shanghai Composite was marginally higher. Rising US Treasury yields have also added to concerns in global equity markets as investors assess the outlook for interest rates and economic growth.
The weakness was spread across several sectors on the domestic market. Banking, financial services and private bank stocks were among the major laggards. FMCG, oil and gas, consumer durables and cement stocks also faced selling pressure. The relative strength in pharmaceutical and healthcare stocks provided limited support as the broader market remained weak.
Despite the overall decline, several stocks attracted buying interest. Ellenbarrie Industrial Gases gained around 5% after receiving a ₹481-crore order from Bharat Heavy Electricals Limited (BHEL). The order-related development helped the stock outperform the broader market.
Varmora Granito also made a positive debut on Tuesday. The stock listed at ₹155 on the NSE, compared with its issue price of ₹148, marking a 4.73% premium. The listing came even as broader market sentiment remained weak.
PB Fintech was another stock in focus during the session. The company’s shares gained around 4% after Bernstein retained its Outperform rating with a target price of ₹2,310. The stock had faced sharp selling in the previous two sessions following concerns over proposed changes to insurance distribution regulations.
Investors are now closely watching developments in crude oil, the rupee, foreign fund flows and global bond yields for signs of how the market could move ahead. Geopolitical developments in the Middle East remain another important factor for global markets.
The recent weakness has also brought the focus back to valuation and earnings expectations. With the Sensex and Nifty already trading close to six-month lows, market participants are looking for stability after several sessions of selling.
The immediate market mood remains cautious. Elevated crude prices, a weaker rupee, FII selling and pressure on banking and financial stocks are keeping investors on edge, while select pharma, healthcare and company-specific stocks are continuing to attract buying interest.