Why Are Indian Stock Markets Plummeting? Insights on Recent Trends

The Indian stock markets have seen a significant decline, with the Sensex dropping over 850 points amid rising crude oil prices and geopolitical tensions. This article delves into the factors contributing to this downturn, including foreign fund outflows and weak global cues. Investors are increasingly concerned about the implications of these developments on inflation and corporate margins. As the markets continue to react to these pressures, understanding the underlying causes is crucial for navigating this turbulent financial landscape.

By Narendra Chaudhary Apr 23, 2026, 16:48 IST

Market Overview

Mumbai: The Indian stock markets experienced a downturn for the second day in a row on Thursday, with the benchmark Sensex dropping by 852.49 points. This decline was influenced by crude oil prices surpassing the USD 100 per barrel threshold amidst stalled negotiations between the US and Iran.

Investor sentiment was further shaken by ongoing foreign fund withdrawals and a negative trend in both Asian and European stock markets.

The BSE Sensex closed down 852.49 points, or 1.09%, finishing at 77,664. During trading, it had dipped by as much as 942.31 points, or 1.20%, reaching 77,574.18.

Meanwhile, the NSE Nifty fell by 205.05 points, or 0.84%, concluding at 24,173.05.

Among the major losers in the Sensex group were Trent, Bajaj Finserv, Tech Mahindra, Mahindra & Mahindra, Infosys, and HDFC Bank.

Conversely, Adani Ports, Larsen & Toubro, Sun Pharma, Bharti Airtel, and Bharat Electronics managed to gain.

Brent crude, the global oil benchmark, was trading 1.89% higher at USD 103.8 per barrel.

According to Hariprasad K, a Research Analyst and founder of Livelong Wealth, "The Indian markets have continued their downward trend, with the Nifty experiencing consecutive bearish sessions and a correction of over 400 points in the last two trading days. This price movement indicates a shift in market sentiment from resilience to risk aversion due to escalating global uncertainties and a lack of immediate domestic support."

He highlighted that the primary factor behind today's decline is the significant rise in geopolitical tensions in West Asia.

Hariprasad added, "Fears of disruptions in the Strait of Hormuz have severely impacted investor confidence, adding a new layer of uncertainty to global markets. For an economy like India, which relies heavily on imports, this situation creates dual pressures: rising inflation expectations and strain on corporate profit margins."

Data from exchanges revealed that Foreign Institutional Investors (FIIs) sold equities worth Rs 2,078.36 crore on Wednesday.

In Asian markets, South Korea's Kospi index closed higher, while Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng indices ended lower.

European markets were also trading lower during mid-session.

Vinod Nair, Head of Research at Geojit Investments Limited, stated, "Domestic equities faced widespread declines as elevated crude prices above USD 100 per barrel, coupled with the deadlock in US-Iran negotiations, continued to dampen market sentiment. The risk-off atmosphere was exacerbated by weak global indicators, ongoing FII outflows, and a depreciating rupee alongside rising US Treasury yields."

In overnight trading on Wednesday, US markets closed higher.

On Wednesday, the Sensex had already fallen by 756.84 points, or 0.95%, to settle at 78,516.49, while the Nifty dropped by 198.50 points, or 0.81%, ending at 24,378.10.