Sensex, Nifty fall as rupee hits record low and crude oil surges

While metal, PSU bank and oil-linked stocks declined, IT shares gained on expectations of stronger dollar-linked earnings. | Photo Credit: iStockphoto

A historic slide in the rupee and surging crude oil prices overshadowed a brief midday rally on Dalal Street Friday, as Indian equity markets ended in the red for a second straight session amid a cocktail of geopolitical tension, imported inflation fears, and relentless foreign selling.

Rupee weakness and crude oil surge weigh on markets

“The sharp fall in the Indian rupee is mainly being driven by a mix of global uncertainty and rising crude oil prices,” said Dr Ravi Singh, Chief Research Officer at Master Capital Services. “...sustained currency weakness can keep volatility elevated and may slow foreign investor participation in the near term.”

The Nifty 50 settled at 23,643.50, down 46.10 points or 0.19 per cent, after touching an intraday high of 23,839.30 before heavy selling dragged it lower. The BSE Sensex declined 160.73 points or 0.21 per cent to close at 75,237.99. Broader markets fared worse — the Nifty Midcap 100 fell 0.45 per cent and the Smallcap 100 declined 0.61 per cent, reflecting widespread caution. On a weekly basis, the Nifty lost 2.10 per cent while the Sensex shed over 2,000 points.

The rupee breached the 96 mark against the US dollar for the first time in history, touching a record low of 96.06 — a development that rattled investor confidence on multiple fronts. Brent crude oil remained firm above $106 a barrel, while domestic crude futures surged nearly 4 per cent, trading above ₹10,000. The government’s decision to hike retail petrol and diesel prices by approximately ₹3 per litre — the first such revision in nearly four years — further stoked inflation fears and weighed on crude-sensitive sectors like aviation, paints, and logistics.

Metals, oil and PSU stocks see heavy selling

Adding to the day’s turbulence, silver plunged by more than 6 per cent, and gold fell by nearly 2 per cent in domestic markets, with the stronger dollar prompting aggressive profit-booking in bullion after a tariff-driven rally.

Sectorally, Nifty Realty, Metal, PSU Bank, and Oil & Gas indices bore the brunt of the selloff. Oil marketing companies remained under pressure amid concerns about supply through the Strait of Hormuz. On the other side, IT and Media were the standout gainers. A firm overnight Nasdaq and the rupee’s slide — which acts as an earnings tailwind for dollar-billing companies — triggered institutional buying in large-cap technology names. DRREDDY and TMPV were among the top Nifty gainers, while Hindalco and Eternal were the notable losers.

Geopolitical tensions keep investors cautious

The Trump-Xi summit in Beijing and Prime Minister Narendra Modi’s visit to Abu Dhabi provided fleeting positivity, though markets quickly refocused on unresolved geopolitical risks, particularly around Taiwan and the Middle East. “Although the RBI has been intervening in the forex market, it appears focused only on controlling volatility rather than defending a specific level,” noted Abhinav Tiwari, Research Analyst at Bonanza.

Analysts watch crude, rupee and global developments

Looking ahead, the market’s near-term trajectory hinges on a cluster of macro triggers. “Market sentiment will largely depend on crude oil prices, global geopolitical developments, foreign investor activity, and the RBI’s measures to manage currency volatility,” said Santosh Meena, Head of Research at Swastika Investmart. Analysts flagged 23,800 as the immediate resistance, with 24,000 as the key psychological hurdle. On the downside, a breach below 23,500 could open the door toward 23,000. Any diplomatic breakthrough on the Strait of Hormuz or credible signals from the Trump-Xi talks could serve as the next decisive catalyst for direction.

Published on May 15, 2026