Sensex drops 1,000 pts, Nifty slips below 22,250 as crude surges, RBI turns hawkish

Domestic equity market suffered a sharp selloff on Thursday, with benchmark indices falling to their lowest levels in 18 months as surging crude prices, a hawkish monetary policy stance and weak global cues weighed on investor sentiment. The Nifty 50 slipped below the 22,250 mark. All sectoral indices on the NSE ended in the red, while most IT shares bucked the broader market trend.

Selling was broad-based, with heavy pressure across sectors and sharper declines in rate-sensitive and economically exposed segments. The steep fall in broader markets and weak market breadth underscored the intensity of the risk-off sentiment.

The decline followed Wednesday's sharp losses and reflected growing caution among investors as the corporate earnings season gathered pace. Tata Consultancy Services announced its Q2 FY27 results, reporting a 1.3% QoQ and 11.2% YoY increase in revenue. Investors will now assess corporate earnings for signs of resilience amid a challenging global environment.

Crude oil emerged as a key pressure point, with Brent futures rising above $104 a barrel as renewed tensions in the Middle East fuelled concerns over supply disruptions. Higher oil prices could add to imported inflation, weigh on the rupee and pressure corporate margins, particularly in oil-sensitive sectors.

Global markets offered little support, with elevated US Treasury yields and expectations of tighter monetary conditions weighing on risk appetite. Persistent foreign investor outflows and a weaker rupee added to the pressure on Indian equities.

The Reserve Bank of India's hawkish policy shift also weighed on sentiment. The central bank raised the repo rate by 25 basis points to 5.50% and shifted its policy stance to calibrated tightening on Wednesday, raising concerns over liquidity, borrowing costs and equity valuations.

The S&P BSE Sensex tumbled 1,045.46 points or 1.44% to 71,593.24. The Nifty 50 index tanked 371.25 points or 1.64% to 22,231.80. In the two consecutive trading sessions, the Sensex declined 2.02%, while the Nifty 50 fell 2.39%.

ITC (down 4.03%), Reliance Industries (down 2.46%) and HDFC Bank (down 1.49%) were major Nifty drags today.

The broader market underperformed the frontline indices. The BSE 150 MidCap Index dropped 2.48% and the BSE 250 SmallCap Index slipped 2.49%.

The market breadth was weak. On the BSE, 1,003 shares rose and 3,426 shares fell. A total of 225 shares were unchanged.

The NSE's India VIX, a gauge of the market's expectation of volatility over the near term jumped 10.38% to 15.33.

Numbers to tracks:

In the commodities market, Brent crude for December 2026 settlement surged $4.29 or 4.28% to $104.49 a barrel.

The United States 10-year bond yield jumped 1.27% to 5.345.

The yield on India's 10-year benchmark federal paper advanced 0.58% to 7.285 compared with the previous session close of 7.243.

In the foreign exchange market, the rupee lowered against the dollar. The partially convertible rupee was hovering at 96.8500 compared with its close of 96.7550 during the previous trading session.

MCX Gold futures for 4 December 2026 settlement rose 0.14% to Rs 1,49,319.

The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was up 0.16% to 102.41.

Global Markets:

Dow futures were down 484 points, signalling a weak opening for US stocks.

European declined amid concerns over France's fiscal position added to market pressure. Bank of France Governor Emmanuel Moulin said the country's economic situation was serious, citing higher borrowing costs, a large budget deficit and political uncertainty over the 2027 budget. He said France did not currently need intervention from the European Central Bank and that the country needed to address its fiscal problems domestically.

Asian market ended sharply lower on Thursday as rising US Treasury yields, higher oil prices and expectations of further Federal Reserve rate hikes weighed on investor sentiment.

Oil prices rose amid renewed geopolitical tensions in the Middle East, adding to concerns over inflation and higher interest rates.

The release of minutes from the Federal Reserve's September meeting also weighed on sentiment. The minutes showed that all 19 policymakers supported the September rate hike, while most officials considered another rate increase likely to be appropriate by the end of the year. However, the minutes also showed differences among policymakers over the inflation outlook and the need for further rate increases.

US stocks ended lower on Wednesday as Treasury yields remained elevated. The Dow Jones Industrial Average declined 0.66%, while the S&P 500 and Nasdaq Composite both fell 0.22%.

Investors will now focus on the upcoming third-quarter earnings season, while Treasury yields, oil prices, geopolitical developments and expectations for further Fed rate hikes are likely to remain key drivers for global equity markets.

New Listing:

Shares of Nityas Gems & Jewellery ended at Rs 84.15 on the BSE, representing a premium of 12.20% as compared with the issue price of Rs 75.

The stock debuted at Rs 82 on the BSE, a premium of 9.33% over its issue price. The stock has hit a high of Rs 86.09 and a low of Rs 77.91. On the BSE, over 11.03 lakh shares of the company were traded in the counter.

Shares of Vishal Nirmiti ended at Rs 204.25 on the BSE, representing a discount of 7.16% as compared with the issue price of Rs 220.

The stock debuted at Rs 215 on the BSE, a discount of 2.27% over its issue price. The stock has hit a high of Rs 215 and a low of Rs 204.25. On the BSE, over 49,000 shares of the company were traded in the counter.

Stocks in Spotlight:

Tata Consultancy Services (TCS) fell 0.21%. The IT major reported a 1.3% quarter-on-quarter and 11.2% year-on-year increase in consolidated revenue to Rs 73,188 crore in Q2 FY27. Constant-currency revenue growth stood at 0.5% QoQ. Net profit rose 4.01% QoQ and 14.98% YoY to Rs 13,884 crore, with a net margin of 19%. The company reported an operating margin of 24% in Q2 FY27.

The company's total contract value (TCV) stood at $9.6 billion in Q2 FY27, up from $9.5 billion in Q1 FY27 but down from $12 billion in Q4 FY26.

The company declared a dividend of Rs 12 per share. The record date is 14 October 2026, and the dividend will be paid on 30 October 2026.

One 97 Communications (Paytm) slumped 5.23% after the Reserve Bank of India (RBI) disclosed that Paytm Payments Bank Limited (PPBL) had been excluded from the Second Schedule to the RBI Act, 1934. The RBI said PPBL was excluded from the Second Schedule through a notification dated 31 July 2026, which was published in the Gazette of India on 7 September 2026.

PC Jeweller rallied 5.94% after the company reported approximately 28% YoY growth in consolidated revenue for the quarter ended 30th September 2026, supported by healthy demand.

Fino Payments Bank surged 11.46% after the company?s average total deposits jumped 13% to Rs 2794 crore in Q2 FY27, compared with Rs 2,480 crore in Q2 FY26.

GM Breweries fell 9.64% after the company reported a 12.61% YoY and 4.11% QoQ increase in profit after tax to Rs 39.29 crore in Q2 FY27. Net sales increased 18.28% YoY and 6.98% QoQ to Rs 213.52 crore.

Senco Gold surged 3.03% after the jewellery retailer reported 29% year-on-year growth in retail revenue in Q2 FY27, supported by festive demand and strong same-store sales growth. Total revenue, including corporate, e-commerce and exports, increased 31% year-on-year in Q2 FY27. Retail revenue grew 29%, while same-store sales growth (SSSG) stood at 19%.

Matrimony.com shed 0.48%, reversing early 9.35% spike. The company reported a 10.7% year-on-year increase in consolidated billings to Rs 131.09 crore in Q2 FY27 from Rs 118.44 crore in Q2 FY26.

Interarch Building Solutions shed 1.05%. The company received a Rs 59-crore domestic order for a pre-engineered steel building system for an electronic products manufacturing unit in South India.

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