Sensex, Nifty Extend Declines Amidst Rising Crude Prices

The Cliff News | 29 September 2026

Indian equity benchmark indices, the Sensex and Nifty, continued their downward trajectory on Tuesday, trading near six-month lows. The market sentiment was significantly impacted by a combination of elevated crude oil prices and persistent foreign fund outflows.

The benchmark Sensex closed the trading session 242.65 points lower, marking a 0.33 percent decline to settle at 72,529.07. Concurrently, the broader Nifty index also extended its losses, falling 64.05 points or 0.28 percent to end the day at 22,716.20.

Key Factors Driving Market Downturn

A primary catalyst behind the market's slump was the ongoing surge in global crude oil prices. Brent crude, the international oil benchmark, witnessed a 1.74 percent increase, reaching USD 107.1 per barrel. This rise is attributed to uncertainties surrounding the West Asia situation, which has created a ripple effect across global financial markets.

The sustained gains in crude prices directly impact inflation expectations and corporate input costs, leading to cautious investor sentiment. This concern was reflected in the broader market indices, with both the Nifty Smallcap 100 and Nifty Midcap 100 experiencing significant dips, declining by 1.02 percent and 0.95 percent, respectively.

Sectoral Weakness

The downturn was not confined to broad market indices. Several heavyweight sectors also bore the brunt of the market sell-off. Financial, banking, and IT stocks, which are typically seen as bellwethers of the economy, fell by up to 1 percent. This broad-based weakness underscored the prevailing bearish sentiment among investors.

Foreign institutional investors (FIIs) continuing their outflow trend also contributed to the pressure on the markets. The withdrawal of funds by foreign entities often signals reduced confidence in the domestic market's immediate prospects, further dampening investor enthusiasm.