- Oil crossed $100 per barrel amid the escalation of the US-Iran war and tensions in West Asia.
- Markets slid as oil prices topped $100, leading to significant losses.
- Sensex settled 330 points lower at 76,059.77, while Nifty dropped 100 points to end at 23,767.45.
- Nifty and Sensex extended losses for the fifth consecutive session as investors remained cautious.
- Brent crude rose above $100 per barrel, impacting market sentiment significantly.
- Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,999.23 crore on Thursday (July 23, 2026), contributing to the market decline.
- Higher oil prices pose a key risk for India, potentially stoking inflation and squeezing growth.
Indian equity markets continued their downward trend, with the Sensex and Nifty both closing lower for the fifth consecutive session. The 30-share BSE Sensex declined by 331.62 points or 0.43%, settling at 76,059.77, while the 50-share NSE Nifty dipped 102.15 points or 0.43% to end at 23,767.45.
The decline was largely attributed to rising oil prices, as Brent crude surged past $100 per barrel amid escalating tensions in the Middle East. This spike in oil prices has raised concerns over inflation and economic growth in India, the world's third-largest crude importer. Foreign Institutional Investors (FIIs) also contributed to the market's woes, offloading equities worth ₹2,999.23 crore on Thursday.6
Market analysts suggest that sustained high oil prices could adversely impact key macroeconomic indicators and growth dynamics. The US-Iran conflict has further exacerbated market sentiment, with investors remaining cautious. All 16 major sectors logged losses, reflecting a broad-based sell-off.
As geopolitical tensions continue to loom, market sentiment is expected to remain under pressure, with technology-heavy markets being hit the hardest due to higher rates weighing on growth.
The global oil benchmark had previously dropped to $96.98 per barrel after surpassing $100, indicating volatility in energy markets.
Overall, the combination of geopolitical tensions and rising oil prices has created a challenging environment for Indian equity markets, prompting investors to seek diversification in their portfolios.
“Foreign institutional investors sold equities worth ₹2,999.23 crore on Thursday, while Asian markets weakened, with South Korea's KOSPI plunging 5.72%. Infosys fell 1% after trimming its full-year revenue growth forecast to 1.5%-3%, citing macroeconomic uncertainty, and all 16 major sectors ended in the red.”
The Indian Express
