Markets declined for a third consecutive session on Friday, with the Nifty 50 dropping 275 points, or 1.14%, to close at 23,898, marking its largest single-day loss in April. The slump was exacerbated by a significant sell-off in IT stocks and rising crude oil prices, further weakening market sentiment.
The Sensex also experienced a downturn, falling 983 points to finish at 76,681, as all sectoral indices closed in the negative. The Nifty IT index suffered the most, plummeting over 5% following disappointing earnings forecasts from major players, including Infosys and HCL Tech, which unsettled investor confidence in a critical sector. While Infosys and TCS were among the key underperformers, Coal India and Trent emerged as rare gainers during the trading session.
The downturn occurred amid deteriorating global conditions. Brent crude prices surged above $100 per barrel as tensions in the Strait of Hormuz continued, raising energy supply concerns. “Markets are currently pricing in a level of optimism that appears disconnected from the underlying geopolitical and energy realities,” noted Justin Khoo, Senior Market Analyst at VT Markets. He added, “Energy supply chains do not normalize as quickly as market sentiment.”
Investor concerns were amplified by the rupee’s depreciation, which fell past the 94.2 mark against the dollar—its fifth consecutive day of losses and its steepest weekly decline since September 2022. This downward trend has been propelled by sustained foreign institutional outflows and escalating import costs due to high crude prices, with analysts suggesting a potential drop toward 95.
Institutional investment flows posed further challenges, as foreign institutional investors returned to net selling after a brief pause. The overall market breadth also worsened, with only 383 out of 500 Nifty stocks closing positive, resulting in a BSE advances-declines ratio of 0.46.
The macroeconomic outlook faced additional headwinds this week, with J.P. Morgan and HSBC both issuing downgrades for Indian equities—J.P. Morgan to Neutral and HSBC to Underweight—citing earnings downgrades, elevated valuations, and India’s susceptibility to oil price fluctuations. J.P. Morgan projected that a critical scenario with oil at $120 per barrel could reduce GDP by 2% and earnings by 3%. HSBC also warned that “valuations will appear elevated as earning downgrades feed through,” highlighting that India appears less attractive compared to its North-East Asian counterparts in the current landscape.
Gold prices experienced volatility domestically, fluctuating between ₹1,50,700 and ₹1,51,900 intraday, driven by heightened safe-haven demand amid tensions in West Asia. Technically, support levels were identified around ₹1,49,000, with resistance near ₹1,54,000.
Looking forward, markets are expected to closely monitor crude oil price developments, as any further disruptions in Hormuz shipping could generate additional pressure on both the rupee and corporate margins. The ongoing Q4FY26 earnings season, particularly management predictions for FY27, will serve as an important short-term indicator. Immediate support for the Nifty is found in the 23,550–23,600 range, while a recovery above 24,200 will be necessary to shift the short-term sentiment back toward bullish territory.
Published on April 24, 2026.
