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Sensex Plunges 983 Points, Nifty Slips Below 24,000 on Oil Spike

Indian equity benchmarks ended sharply lower on Friday, with the Sensex falling 982.71 points and the Nifty slipping below 24,000. A surge in crude oil prices above $100 per barrel, driven by geopolitical tensions and disruption at the Strait of Hormuz, rattled investor sentiment. Information technology stocks led the decline, dragging the sector down by around 5%. Experts noted that elevated crude prices are inflationary and could widen India's current account deficit, while 24,000 has emerged as a key resistance level for the Nifty.

Key Points: Sensex Falls 983 Points, Nifty Below 24,000 as Oil Surges

  • Sensex drops 982.71 points to 76,681.29
  • Nifty falls 275.10 points to 23,897.95
  • IT stocks lead sell-off, down 5%
  • Crude oil surges above $100 on Strait of Hormuz disruption
2 min read

Sensex falls 983 points, Nifty slips below 24,000 as oil spike hits sentiment

Indian markets fell sharply as crude oil spike above $100 hit sentiment. IT stocks dragged, with Sensex down 983 points and Nifty below 24,000.

"A decisive move above 24,000 is required to ease selling pressure and trigger a recovery towards 24,200. - Analyst"

Mumbai, April 24

Indian equity benchmarks ended sharply lower on Friday as a surge in crude oil prices rattled investor sentiment amid rising geopolitical tensions linked to stalled US-Iran talks and disruption at the Strait of Hormuz.

The Sensex dropped 982.71 points, or 1.27 per cent, to close at 76,681.29, while the Nifty declined 275.10 points, or 1.14 per cent, to settle at 23,897.95.

Commenting on technical outlook, experts said that on the upside, 24,000 has now emerged as a strong resistance band, as the previous support has transitioned into a supply zone, capping recovery attempts.

"A decisive move above 24,000 is required to ease selling pressure and trigger a recovery towards 24,200, while a break below 23,800 could extend weakness towards the 23,600 level," an analyst stated.

The sell-off was largely driven by weakness in information technology stocks, which bore the brunt of the decline.

Shares of Infosys, Tata Consultancy Services, and Tech Mahindra emerged as the top losers on the Nifty IT index, dragging the sector down by around 5 per cent.

Broader markets also mirrored the weak trend, with the Nifty MidCap and Nifty SmallCap indices falling 0.96 per cent and 0.87 per cent, respectively.

Among sectors, apart from IT, the Nifty Pharma and Nifty Media indices also ended in the red, adding to the overall market weakness.

However, the Nifty Metal index showed relative resilience, posting the smallest decline among sectoral indices.

Investor sentiment was dampened by a sharp rise in global crude oil prices. Brent crude surged above the $100 per barrel mark, with the April futures contract trading 2.07 per cent higher at $107.25 per barrel.

The spike in oil prices comes amid continued disruption in energy supplies due to the blockade at the Strait of Hormuz, a key global oil transit chokepoint.

Experts said that market participants remained cautious as elevated crude prices are seen as inflationary and could widen India's current account deficit, potentially impacting economic stability in the near term.

"The week ended on a weak note, with no meaningful progress in Middle East ceasefire discussions and continued disruption in the Strait of Hormuz," a market expert noted.

- IANS

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Reader Comments

S
Sarah B
😟 This is exactly why I've shifted my portfolio to gold ETFs. Markets are too volatile with Middle East tensions. My Nifty SIP is down 12% this month alone. The Strait of Hormuz disruption is a global issue, but India feels it more since we import 80% of our oil. Sabka time aayega, but right now it's tough.
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Priya S
Honestly, I'm not surprised. The market has been overvalued for months, and this oil shock is just the trigger. But what frustrates me is the lack of a clear strategy from SEBI or the finance ministry. When will we learn to hedge against geopolitical risks? A 5% drop in IT stocks shows we're too dependent on global sentiment.
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Rajesh Q
Main toh abhi mutual funds mein hi hoon, lekin yeh 983 points ka drop toh daraane wala hai. 🏦 The fact that Nifty broke below 24,000 is a big psychological blow. But as they say, "Buy the dip!" - I'm looking at adding some metal stocks since they showed resilience. Kab tak girte rahenge?
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Naveen S
The analyst says 24,000 is now resistance? That's a classic reversal of roles. Last week everyone was cheering 24,500, and now we're praying for 24,000 support. 😅 This market is like a cricket match - one bad over and the entire mood changes. Wait for the 23,800 level; if it breaks, be ready for 23,600!
A
Ananya R
📉 This

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