Markets opened sharply lower on Thursday, April 23, 2026, dragged down by a confluence of rising crude oil prices, foreign institutional selling, and escalating geopolitical tensions in West Asia. The BSE Sensex, which closed at ₹78,516.49 on Wednesday, opened at ₹77,983.66 and was trading at ₹77,754.00, down ₹762.49 or 0.97 per cent, as of 9.16 AM. The NSE Nifty 50, which had closed at 24,378.10, opened at 24,202.35 and slipped further to 24,176.40, down 201.70 points or 0.83 per cent at the same time.

The selloff was partly anticipated, with GIFT Nifty trading around 24,200, down nearly 160 points before the opening bell, signalling a gap-down start. "Indian equity markets are expected to open on a weak to negative note on Thursday, tracking sharp weakness in GIFT Nifty and cautious global cues," said Aakash Shah, Technical Research Analyst at Choice Equity Broking. "The decline reflects profit booking after the recent rally, continued foreign institutional selling, and cautious sentiment amid ongoing geopolitical developments."

The primary overhang on markets remains the West Asia crisis. Brent crude has breached the $100-per-barrel mark and was trading around $102.19, after Iran's Revolutionary Guards seized vessels in the Strait of Hormuz — its first such action since the conflict with the US and Israel began in February. US-Iran negotiations have stalled, and the continued blockade of Iranian ports has raised fears of prolonged disruptions to global energy supply chains.

"With total uncertainty becoming the new normal there is no clarity on the near-term direction of the market," said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. "If Brent crude remains at an average of $100 for many months, India's growth and corporate earnings will take a hit. The market has not discounted this yet."

Global brokerage HSBC downgraded India to Underweight from Neutral, citing the country's heavy reliance on imported energy and potential knock-on effects on inflation and domestic demand. HSBC flagged that consensus earnings forecasts of 16 per cent year-on-year growth for 2026 are likely to face downward revisions as valuations, though corrected from their peak, remain elevated relative to North East Asian peers.

On the institutional front, Wednesday's session was marked by a rare simultaneous selloff by both foreign and domestic institutions. Foreign Institutional Investors (FIIs) recorded outflows of approximately ₹2,078 crore, while Domestic Institutional Investors (DIIs) sold shares worth around ₹1,048 crore. India VIX, a key gauge of near-term market volatility, was trading at 18.30, up 4.38 per cent, indicating growing nervousness among investors.

Sectorally, banking and financial stocks bore the brunt of selling pressure. Bank Nifty was consolidating in the 57,000–57,500 range, with resistance at 57,450–57,500 capping further gains. IT stocks remained under pressure following weak commentary from recent quarterly results. HCL Technologies' disappointing guidance had already weighed on the sector in the previous session, and Infosys was scheduled to report its Q4 results later Thursday, making it a critical trigger for the sector. Tech Mahindra and Trent are also among the stocks closely watched.

Among the top Nifty 50 gainers in early trade, Dr. Reddy's Laboratories led with a rise of 1.54 per cent, trading at ₹1,235.80. ONGC advanced 0.78 per cent to ₹285.85, while Jio Financial Services edged up 0.47 per cent to ₹239.64. BEL gained a marginal 0.19 per cent to ₹449.55, and Cipla added 0.19 per cent to ₹1,238.70.

On the losing side, IndiGo was the top laggard, falling 2.26 per cent to ₹4,536.20. UltraTech Cement dropped 1.85 per cent to ₹11,968.00, while Mahindra & Mahindra lost 1.78 per cent to trade at ₹3,093.70. Eternal slipped 1.75 per cent to ₹258.38, and SBI Life Insurance declined 1.69 per cent to ₹1,852.90.

India's fertiliser sector is also in focus amid macro stress, with FY26 production contracting 0.1 per cent year-on-year — the weakest in 13 years. Urea import prices have surged nearly 90 per cent above pre-conflict levels, with the latest 2.5 million tonne tender drawing quotes around $490 per tonne. Supply disruptions linked to the Strait of Hormuz are expected to persist.

"Once stocks reach new highs after a correction, the upward trend can last for some time, as corrections reset sentiment which allows stocks to climb higher," said Vikram Kasat, Head of Advisory at PL Capital. However, he noted the Strait of Hormuz remains closed and oil prices have inched higher, keeping some investors cautious.

Technically, the Nifty faces immediate resistance in the 24,400–24,500 zone, with support at 24,100–24,000. A decisive close above 24,600–24,680 would be needed to revive bullish momentum toward 24,900–25,000. On the downside, a break below 24,300 could trigger a deeper correction toward the gap zone around 23,860, analysts said.

Meanwhile, the rupee extended its three-day slide, depreciating 30 paise amid surging crude prices and continued uncertainty over a West Asia peace deal. The Dollar Index (DXY) was at 98.58, and the US 10-year yield stood at 4.31 per cent.

On a broader note, Vijayakumar of Geojit pointed to a notable divergence: "A significant trend in the Indian market is the outperformance of the broader market where there is no significant pressure of FII selling. In fact, FIIs are buying many stocks in the mid and smallcap segments." This selective participation, analysts said, is likely to continue driving stock-specific action through the earnings season.

Published on April 23, 2026