The Indian stock market continued its sharp decline for the second day this week on Tuesday as key equity benchmark indices, Sensex and Nifty, tumbled in early trade amid elevated crude oil prices and uncertainty over the West Asia situation. Meanwhile, foreign fund outflows also weighed on investor sentiment. Meanwhile, the Indian currency--- rupee ----depreciated 16 paise and slumped below the psychological 96 per dollar level in early trade. 

In early trade, Sensex, the 30-share BSE Sensex, dropped 503 points to 72,260.09, while Nifty 50 tumbled 151 points to 22,626.50.

"With Brent crude above $106 and the US 10-year at 5.23%, the global macro construct continues to be unfavourable for equity markets. The emerging macro scenario in the US appears to be one of high growth and high inflation. The massive AI spending is driving growth, and better-than-expected growth will keep inflation elevated, warranting one more rate hike by the Fed. This, in turn, is pushing US bond yields higher," said Dr V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
 
"Since higher crude prices have not been passed on to consumers, the fiscal strain on India will be higher in FY27. Therefore, if crude prices remain elevated, the fiscal strain can impact India’s GDP growth and corporate earnings growth for FY27. This concern, too, is weighing on the market," he said further. 
 

Top Losers And Gainers And Crude Price

Category

Details / Stocks

Top Losers

Bajaj Finance, HDFC Bank, Kotak Mahindra Bank, Reliance Industries, Asian Paints, Infosys

Top Gainers

Sun Pharma, InterGlobe Aviation, Adani Ports

Brent Crude

Traded 1.74% higher at USD 107.1 per barrel

Earlier on Monday, Sensex plummeted 1,124.02 points, or 1.52 per cent, settling at 72,771.72. This was the lowest closing level since March 30, 2026. The Nifty ended the session at 22,780.25, down 360.25 points, or 1.56 per cent. 

Rupee Slumps 

The Indian currency– Rupee– depreciated 16 paise and slumped below the psychologically important 96 per dollar level in early trade. According to analysts, the elevated crude prices and persistent foreign fund outflows weighed upon the Indian currency.

Market analysts noted that high crude oil prices alongside increasing US yields are driving capital away from emerging markets like India, putting significant pressure on the rupee.


Also In News