Indian stocks tumble as crude spikes and foreign outflows hit market

Indian equities fell sharply on Friday, ending a week‑long rally as Brent crude surged and foreign investors withdrew money. The Sensex dropped more than 1%, closing at 73,123.83, a loss of 125.56 points. The Nifty fell to around 22,600, down 87.65 points or 0.4%. Pabitro Mukherjee, deputy vice‑president of research at Bajaj Broking, said elevated Brent prices and weak global cues weighed on sentiment, with broader markets falling faster than front‑line indices. Brent crude rose to $114.6 a barrel, a five‑month high, after Houthi attacks on Saudi facilities. The price rise pushed risk‑averse investors away from emerging markets. Foreign institutional investors were net sellers, pulling out ₹3,459 crore on Thursday, though IPO‑linked inflows and domestic institutional buying limited the net outflow. Technology and AI stocks sparked a sell‑off on Wall Street, sending the S&P 500 down 1.25% and the Nasdaq down 2.9%, which in turn pressured Asian markets. The rupee weakened for the second day, ending at 94.40 per dollar and briefly touching 94.97, but inflows tied to Jio Platforms Ltd's IPO helped cap the fall.

Context

Crude oil price spikes often raise India's import costs, which can depress equity markets. Foreign institutional flows are a key driver of market direction, especially in a global risk‑off environment.