Stock markets crash as rising oil prices hit investor sentiment
Indian stock markets tumble sharply as oil prices surge amid global tensions, dragging Sensex and Nifty lower, while IT stocks lead losses and investor confidence weakens further
- Stock markets crash as oil prices surge globally
- Oil prices impact drives Sensex and Nifty fall
- Stock markets hit as IT stocks see heavy losses
A sharp rise in global oil prices triggered a major selloff in Indian stock markets on Friday, leaving investors worried as key indices ended deep in the red. The surge in crude rates, driven by geopolitical tensions, significantly weakened market sentiment.
The benchmark indices saw steep declines, with the Sensex dropping nearly 983 points to close at 76681.29. The Nifty also slipped below the crucial 24000 mark, settling at 23897.95 after losing over 275 points. The fall reflected widespread selling pressure across sectors.
Technology stocks bore the brunt of the downturn, dragging the markets lower. The IT index plunged around five percent, with major companies like Infosys, TCS and Tech Mahindra recording notable losses. Apart from IT, sectors such as pharma and media also ended the session in negative territory.
Global concerns played a key role in the market slide. Rising tensions and supply disruptions, particularly around critical oil routes, pushed Brent crude prices above 107 dollars per barrel. The increase in oil prices raised fears of higher inflation and a widening current account deficit.
Broader markets followed the same trend, with midcap and smallcap indices declining by about one percent. However, the metal sector showed relative resilience, managing to limit its losses compared to other segments.
Market experts noted that the 24000 level has become a strong resistance for the Nifty. Analysts warned that if the index falls below 23800, it could slide further towards the 23600 range, indicating continued volatility in the near term.
