MARKET WRAP: Red Streak Extends on West Asia Jitters
Indian equities slumped for a second consecutive session on Friday, 24 April 2026, as escalating tensions in West Asia and a fresh spike in crude prices triggered broad-based selling. The BSE Sensex tumbled 982.71 points or 1.27% to close at 76,681.29, while the NSE Nifty 50 shed 268.75 points or 1.11% to end at 23,904.30.
Both benchmarks opened gap-down and traded with a negative bias through the day. Sensex touched an intraday low of 76,403.87 after opening at 77,483.80, while Nifty hit 23,813.65 versus its open at 24,100.55. The indices are now 9.3% and 9.4% below their 52-week highs of 86,159.02 and 26,373.20, respectively.
Flashpoints: Why the Street Bleeds
1. Crude shock deepens macro anxiety
Brent crude extended its rally, rising 2.07% to $107.24, the fourth straight gain, as Iran seized two vessels in the Strait of Hormuz and US-Iran negotiations stalled. With April futures trading above $106, traders fear the blockade will prolong supply disruption. Analysts warned that Brent holding above $100 could dent India’s growth and corporate earnings.
2. FII exodus, rupee slide weigh
Foreign institutional investors sold a net $4.4 billion worth of Indian shares in April and $18.6 billion so far in 2026, HSBC noted while downgrading India to “underweight”. Currency volatility added to the stress as import costs rose.
3. Global cues stay fragile
US equities reversed early gains amid tech weakness, while Asian markets also traded under pressure. India VIX rose 1.58% to 18.59, signaling elevated uncertainty.
Sector Scan – Auto, Banks Skid; Pharma Finds Shelter
Thirteen of 16 major sectors ended in the red. Nifty Auto lost 2.4% and Nifty Financial Services fell 1.4%, dragged by ICICI Bank and HDFC Bank. Nifty IT dropped 1.2% as Infosys shed 2.2% ahead of its results.
Defensive bets offered relief. Nifty Pharma gained 2.4%, led by Cipla’s 5.7% jump after USFDA approval for a generic respiratory drug. FMCG also showed relative resilience.
Technical Take – Support Zones in Focus
For Bank Nifty, analysts see a bearish intraday bias below 56,500, with critical support at 55,500–55,200. A break below could accelerate selling, while holding above may trigger short covering. Nifty support lies at 23,950–24,000, with resistance at 24,350–24,400.
Geopolitical File – Strait of Hormuz Chokepoint Roils Sentiment
The primary catalyst remains stalled US-Iran dialogue and Iran’s seizure of vessels in Hormuz. Pakistan-hosted talks now face scepticism after the White House cancelled a planned visit. Traders briefly cheered an extension of the Lebanon-Israel ceasefire, but the Hormuz disruption outweighed that optimism.
Business News – Earnings, Policy Moves on the Radar
Infosys reported Q4 FY26 net profit up 21% to Rs 8,501 crore, but its workforce fell sequentially by 8,440 employees. India’s crude oil production fell 2.5% in 2025–26, the 11th consecutive annual decline, deepening import dependence. Under a proposed interim deal, the US lowered tariffs on India from 50% to 18%. The RBI warned of “second-round effects” from West Asia tensions as supply shocks risk turning into demand pressures.
OUTLOOK: Range-Bound Till Crude Cools
Markets are likely to stay range-bound with volatility elevated. Direction hinges on Hormuz developments and crude trajectory. While domestic investors are betting on valuations and an early resolution, foreign investors remain wary of oil and currency risks. For now, risk aversion dominates Dalal Street, and any rebound needs de-escalation in West Asia and a retreat in Brent below the $100 mark.
