Sensex Falls 536 Points as IT Stocks Decline and Crude Prices Rise

The Sensex dropped by 536.30 points, settling at 72,583.86, while the Nifty fell to 22,422.60, as concerns over elevated crude oil prices and a sell-off in IT stocks weighed on market sentiment.

Selling pressure in the IT sector was significant, with shares losing approximately 2.3%. Infosys experienced a downturn, shedding 3.4% after it downgraded its annual revenue growth forecast due to weakness in its key North American market.

Brent crude futures were around $114 per barrel, slightly down from a near six-month high of $117, though market participants remain attentive to supply concerns stemming from geopolitical tensions in Saudi Arabia. Ponmudi R, CEO of Enrich Money, stated, “Indian equities are likely to remain under pressure as elevated crude oil prices, escalating geopolitical tensions and uncertainty over the US Federal Reserve’s policy outlook weigh on investor sentiment.”

Investors are also anticipating the US Federal Reserve’s policy decision this week. The Fed’s meeting will be crucial for guiding market expectations around future interest rate changes. Though rates are widely anticipated to remain unchanged, any hawkish shifts could affect foreign portfolio flows into emerging markets.

From the 30 companies listed on the BSE, major laggards included Asian Paints, Bajaj Finance, Hindustan Unilever, and Reliance Industries. In contrast, Kotak Mahindra Bank and Sun Pharma were among the few gainers.

The Nifty index is facing continuous selling pressure, with immediate support observed at 22,400–22,300. A breakdown below these levels could lead to further declines, possibly reaching 22,200–22,000, according to market analysts. A breakout above 22,800 is deemed necessary for improving recovery prospects.