Sensex Drops Nearly 1,000 Points as Rising Oil Prices, IT Sell-Off Weigh on Markets

Indian equity markets extended their losses for a third consecutive session, with the BSE Sensex falling nearly 1,000 points amid surging crude oil prices and heavy selling in IT stocks. The broader Nifty 50 also declined sharply, slipping below key psychological levels and reflecting weak investor sentiment.

The Sensex ended around the 76,600 mark after witnessing steep intraday losses, while the Nifty dropped below 24,000. Market participants attributed the continued downturn largely to rising global crude prices, which have crossed the $100-per-barrel mark due to escalating geopolitical tensions. Higher oil prices are particularly concerning for India, a major importer, as they can fuel inflation, widen the fiscal deficit, and hurt corporate earnings.

The sell-off was led by the information technology sector, where stocks of major firms came under pressure following cautious growth outlooks and subdued earnings expectations. Since IT companies depend heavily on overseas markets, global economic uncertainties have dampened investor confidence in the sector.

Adding to the bearish trend, foreign institutional investors continued to offload Indian equities, intensifying the decline. Persistent outflows, along with a weakening rupee and negative global cues, have kept market sentiment fragile.

The weakness was broad-based, with most sectoral indices ending in the red. Apart from IT, sectors such as banking, pharmaceuticals, and real estate also witnessed selling pressure, indicating widespread caution among investors.