Sensex Plunges 778 Points, Nifty Sheds 280 as Oil Prices Trigger Broad Market Sell-Off

Indian benchmark equity indices ended sharply lower on Tuesday, with selling pressure intensifying towards the close as rising oil prices weighed on investor sentiment and triggered a broad-based risk-off move.

The Sensex fell 777.94 points, or 1.04 per cent, to close at 74,003.82, while the Nifty declined 279.50 points, or 1.19 per cent, to settle at 23,118.60.

The sell-off was widespread, with metal, realty and chemical stocks among the biggest casualties. Several heavyweight stocks also came under pressure, dragging the benchmark indices lower.

From a technical perspective, analysts said the Nifty’s decisive break below the 23,300 support level has weakened the near-term outlook and brought the psychologically important 23,000 mark into focus.

“A sustained break below 23,000 could expose the index to further weakness towards 22,800, while 23,300–23,500 is likely to act as the first resistance band on any recovery,” a market expert said.

Among individual Nifty stocks, Bharat Electronics (BEL), Shriram Finance and IndiGo were among the biggest losers of the session.

The broader market suffered an even sharper decline, suggesting that investor caution extended well beyond large-cap stocks. The Nifty MidCap index dropped 2.12 per cent, while the Nifty SmallCap index fell 2.43 per cent.

Sectoral indices also reflected the broad weakness. The Nifty Realty index plunged around 4 per cent, making it the worst-performing sectoral index, while the Nifty Chemical index also faced significant selling pressure.

Information technology stocks, however, provided a notable exception to the otherwise weak market trend. The Nifty IT index gained around 2 per cent and was the only major sectoral index to finish in positive territory.

Banking stocks also remained under pressure, with the Bank Nifty slipping below the 56,000 level. Market watchers said the index could now find its next important support around 55,500, while the 56,000–56,500 zone is expected to act as a resistance area during any recovery attempt.

The sharp fall across large-, mid- and small-cap stocks indicates that Tuesday’s decline was not confined to a handful of heavyweight counters, but reflected broader investor risk aversion amid concerns over higher crude oil prices and their potential impact on inflation, corporate costs and the wider economy.