Equities Extend Decline as Oil Surge and Strait Blockade Weigh on Sentiment

An end-of-day recap of all that transpired in the Indian markets, highlighting the major price movements and the factors driving them

Amey Bane/iStockphoto.com

By Dehuti Jani

April 23, 2026 at 11:32 AM IST

Indian equities ended lower for a second straight session on Thursday as rising crude oil prices, stalled US-Iran diplomacy and continued disruptions in the Strait of Hormuz weighed heavily on investor sentiment. The Nifty50 declined 0.84% to 24,173.10, while the BSE Sensex fell 1.09% to 77,664.

The selloff intensified after Brent Crude climbed above $103 per barrel for a fourth consecutive session following Iran’s seizure of two vessels in the Strait of Hormuz. Concerns over prolonged supply disruptions and persistent geopolitical tensions in West Asia heightened fears around inflation, corporate margins and India’s current account outlook. Investor sentiment was further dented after HSBC downgraded Indian equities to “underweight”, citing the adverse impact of elevated energy prices.

Financials, automakers and realty stocks led the decline, while pharma stocks emerged as the only major defensive outperformer. Among index laggards, Trent, Tech Mahindra and Shriram Finance were the top losers. Broader markets also weakened, with mid-cap and small-cap indices falling 0.41% and 0.67%, respectively, reflecting broad-based risk aversion.

Markets remained cautious after Donald Trump stated that the ceasefire would continue only until Iran submits a unified proposal, while Tehran reiterated that it was not participating in negotiations. The continued blockade-related tensions in the Strait of Hormuz kept investors focused on the risk of sustained energy price shocks and their implications for global growth.

Top Movers of the Day

Dr. Reddy's Laboratories gained over 9% to ₹1,353 as investors shifted towards defensive sectors amid weakness in equities and rising geopolitical uncertainty.

Cipla gained more than 5% to ₹1, 307 as buying interest in pharma stocks strengthened amid risk-off sentiment in the broader market.

Jio Financial Services gained over 4% to ₹249 after announcing a 50:50 joint venture with Allianz for general and health insurance businesses, which boosted investor sentiment.

Union Bank of India declined nearly 9% after muted Q4FY26 results disappointed investors, while weak net interest income growth and higher slippages weighed on sentiment.

Hitachi Energy India gained 4.2% to ₹31,765 after IDBI Capital initiated coverage with a ‘Buy’ rating, while expectations of strong growth supported the stock at record highs.

BHEL gained 2% to ₹339 as the stock hit a 14-year high, supported by continued momentum in capital goods and infrastructure stocks.

GE Vernova T&D India gained 9.2% to ₹4,628 after its parent company raised FY26 revenue and margin guidance, which boosted sentiment around growth prospects.

Data Patterns gained 10% to ₹4,193 as strong buying momentum continued in defence stocks, while sustained order visibility supported the rally.

Mphasis gained around 3% after announcing the acquisition of Theory and Practice Business Intelligence, as the deal strengthens its AI and decision intelligence capabilities.

Havells India declined sharply after brokerages issued mixed views following Q4FY26 results, which triggered profit booking in the stock.

Trent declined over 4% to ₹4,252 as investors reacted cautiously to Q4FY26 results despite the company announcing a bonus issue.

Godrej Industries gained 5.8% to ₹999.35 despite weak broader markets, as strong momentum buying lifted the stock near the ₹1,000 mark.

Fujiyama Power Systems gained 10% to ₹285.9 after Motilal Oswal initiated coverage with a bullish target price, which boosted investor sentiment around the renewable energy theme.

Futures & Options
Nifty April 2026 futures closed at 24,166, trading at a discount of 7.05 points to the spot Nifty 50 close of 24,173.05, indicating a cautious undertone in the derivatives market. The index declined 0.84% or 205.05 points in the cash segment as rising crude oil prices and geopolitical tensions weighed on equities. Volatility remained elevated, with India VIX rising 1.58% to 18.59, reflecting continued uncertainty around global developments and oil prices. In the F&O segment, HDFC Bank, Infosys and TCS were the most actively traded stock futures, highlighting sustained activity in banking and IT heavyweights.

The April series is set to expire on 28 April 2026, with traders likely to maintain a defensive stance amid elevated volatility, persistent crude oil strength and uncertainty surrounding developments in West Asia.

Bonds
India's government bond yields rose sharply on Thursday as investors reacted to escalating tensions in West Asia and a renewed surge in crude oil prices. The benchmark 6.48% 2035 bond yield climbed to 6.9498%, compared with 6.9225% in the previous session.

Sentiment weakened after Iran seized two vessels in the Strait of Hormuz, a critical route that carries nearly 20% of global oil and LNG supplies, while hopes of renewed US-Iran negotiations faded. Brent Crude closed above $100 per barrel for the first time in over two weeks and remained near $103, intensifying concerns around imported inflation, fiscal pressures and the broader impact on India’s growth outlook.

Forex
Indian rupee weakened for a fourth consecutive session on Thursday, marking its longest losing streak since mid-January, as stalled US-Iran peace talks and surging oil prices continued to pressure sentiment. The currency declined 0.3% to close at 94.1050 against the US dollar.

The rupee has now fallen more than 1% this week, tracking the sharp rise in Brent Crude prices, which have surged nearly 15% amid escalating tensions in West Asia. Investor concerns intensified after Iran seized two container ships in the Strait of Hormuz, raising fears of prolonged disruptions to global energy supplies and worsening India’s inflation and current account outlook.

Crypto
Crypto markets showed a mixed trend on Thursday as investors balanced strong institutional inflows against rising geopolitical tensions and elevated oil prices. Total crypto market capitalisation edged 0.14% lower to around $2.59 trillion amid cautious global risk sentiment.

Bitcoin remained relatively stable near the $77,000–$78,000 range and rose 0.44% to $77,876, supported by more than $1.5 billion in ETF inflows over the past six sessions. Meanwhile, Ethereum declined 0.63% to $2,346.57 as broader altcoin sentiment weakened amid concerns over the escalating US-Iran conflict and its impact on global markets.

US Stock Futures
US stock futures declined on Thursday as stalled progress in US-Iran peace negotiations and caution ahead of more corporate earnings weighed on investor sentiment. Futures on the S&P 500 fell around 0.6% after the benchmark closed at another record high in the previous session.

Futures linked to the Dow Jones Industrial Average and Nasdaq-100 also dropped about 0.6%, reflecting broad-based weakness across sectors. Investors continued to assess earnings from Tesla while monitoring geopolitical developments in West Asia, where uncertainty around US-Iran talks and elevated oil prices have increased market caution.

US Treasury Notes
Yields on US Treasury moved higher on Thursday as persistent inflation concerns and escalating geopolitical tensions continued to pressure bond markets. The benchmark 10-year Treasury yield rose about 2.9 basis points to 4.32%, while the policy-sensitive 2-year yield gained roughly 2.5 basis points to trade near 3.82%.

The rise in yields was driven largely by elevated energy prices, with continued disruptions in the Strait of Hormuz and stalled US-Iran peace efforts keeping Brent Crude above recent highs. Investors increasingly expect the Federal Reserve to maintain a “higher-for-longer” interest rate stance, as sustained oil-driven inflation risks reduce the likelihood of near-term rate cuts.

Top News