Indian Markets Fall: Crude Oil Surge & FII Outflows Hit Stocks

Indian benchmarks extended losses into late afternoon trading, with both the Sensex and Nifty declining around half a percent. This downturn was primarily influenced by a surge in Brent crude oil prices and continued fund outflows by foreign institutional investors.

Market Drivers and Key Figures

Brent crude oil prices climbed above the $82 per barrel mark, fueled by uncertainties surrounding easing tensions in the West Asia crisis following Iran’s missile firing at Israel. This geopolitical development contributed significantly to investor caution.

• Foreign institutional investors (FIIs) remained net sellers on Thursday, offloading securities worth Rs 17.86 crore.
• The BSE Sensex traded at 78452.50, down by 502.26 points, representing a 0.64% decline.
• The index operated within a range of 78396.17 and 78757.40 during the session.

Sectoral and Stock Performance

Banking and Financial services stocks were significant laggards, contributing to the broader market’s decline. Conversely, IT stocks like TCS and Infosys provided some compensatory support.

On the BSE, 11 stocks advanced against 19 stocks that declined on the Sensex.

Top Gaining Sectoral Indices:

• Auto: up by 1.34%
• IT: up by 1.24%
• TECK: up by 0.72%
• PSU: up by 0.35%
• Healthcare: up by 0.31%

Top Losing Sectoral Indices:

• Consumer Durables: down by 1.04%
• Oil & Gas: down by 0.82%
• Bankex: down by 0.71%
• Energy: down by 0.43%
• Realty: down by 0.31%

Key Sensex Movers:

• Gainers: TCS (up 3.25%), State Bank of India (up 2.70%), Mahindra & Mahindra (up 2.20%), Infosys (up 1.07%), HCL Technologies (up 0.97%).
• Losers: Bajaj Finance (down 6.47%), Bajaj Finserv (down 4.32%), ICICI Bank (down 3.53%), Trent (down 3.36%), Asian Paints (down 1.42%).

Global Market Overview

Globally, Asian equity markets exhibited mixed trends, while European equity markets registered gains. Investors globally focused on oil price fluctuations and awaited the forthcoming U.S. jobs report, which could offer insights into the Federal Reserve’s future rate trajectory.

Policy Boost for Bioenergy Sector

In a significant policy development, the Union Cabinet approved the Rs 23,731 crore National Circular Bioenergy Scheme, ‘GOBARdhan’. This scheme is slated for implementation between FY2026-27 and FY2035-36.

The ‘GOBARdhan’ Scheme aims to nearly ten-fold increase domestic Compressed Biogas (CBG) production. It also seeks to mobilize substantial private investment and foster a vibrant circular bioeconomy across India.

This initiative establishes a robust framework for India’s CBG sector, ensuring assured demand, stable pricing, capital assistance, and infrastructure development. The scheme will convert agricultural residue, cattle dung, and other biomass resources into clean fuel, organic manure, and rural income.