Key indices end sharply lower on spike in crude oil

Indian equity benchmarks came under heavy selling pressure and ended with losses of over one and half percent each on Thursday, dragged by a rise in the US benchmark Treasury yield to its highest level since 2007 and a surge in crude oil prices above $100 per barrel. Selling in Telecom, banking and Metal stocks, along with weak global market trends, also dampened investor sentiment.

Some of the important factors in trade:

OECD raises India's FY27 GDP growth forecast to 7.1%: The Organisation for Economic Co-operation and Development (OECD) has raised India's Gross Domestic Product (GDP) growth forecast for FY27 by 80 basis points to 7.1 per cent, up from 6.3 per cent projected in June, due to strong domestic demand and government policies. 

India’s retail sector posts 10% Y-o-Y growth in August: A survey by the Retail Association of India (RAI) has said that India’s retail sector maintained a steady trajectory in August 2026, registering a 10 per cent Y-o-Y growth across the country. It said building on July's strong recovery, stable consumer demand across key regions and categories indicates strong industry preparation for the upcoming festive peak.

OMCs face Rs 530 crore daily losses as surge in crude prices outpaces fuel prices: Amid escalating geopolitical tensions and supply disruptions in West Asia spiking crude prices, the rating agency ICRA has said that state-run oil marketing companies (OMCs) are facing mounting losses on petrol and diesel sales as a surge in crude prices outpaces unchanged domestic fuel prices. 

Rupee to not just stabilise but even appreciate from current levels: Calling rupee’s depreciation over the past one-and-a-half years a temporary phenomenon, the Reserve Bank of India (RBI) Deputy Governor Poonam Gupta has said that there is a fair case for the rupee to not just stabilise but even appreciate from current levels. 

Global front: European markets were trading mostly in red, while Asian markets settled mostly lower as a cautious undertone prevailed after oil prices rose sharply and U.S. bond yields jumped to their highest levels in nearly two decades on inflation concerns stemming primarily from surging global energy prices amid the prolonged West Asia conflict.

Finally, the BSE Sensex fell 1247.71 points or 1.67% to 73,580.54 and the CNX Nifty was down by 383.70 points or 1.64% to 23,063.10. 

The BSE Sensex touched high and low of 74,362.29 and 73,563.92, respectively. There were 29 stocks declining on the index, while 1 stock remained unchanged. 

The top losing sectoral indices on the BSE were Telecom down by 2.31%, Bankex down by 1.88%, Metal down by 1.65%, Auto down by 1.64% and Industrials down by 1.47%, while there was no gaining sectoral index on the BSE.

The top losers on the Sensex were Bajaj Finance down by 5.47%, Axis Bank down by 4.67%, Bajaj Finserv down by 4.06%, Interglobe Aviation down by 2.78% and Trent down by 2.75%, while there was no gainer on the Sensex. 

Meanwhile, the Organisation for Economic Co-operation and Development (OECD) in its Interim Economic Outlook has raised India's Gross Domestic Product (GDP) growth forecast for the current fiscal year 2026-27 (FY27) by 80 basis points to 7.1 per cent, up from 6.3 per cent projected in June. It said this upward revision is driven by resilient domestic demand and government policies that have helped cushion households and firms from the impact of elevated energy prices.  

The Paris-based inter-governmental body said structural policy reforms that enhance the ability of economies to cope with supply side disruptions are also a key priority for governments at the current juncture. It said ‘despite recent strong momentum, reduced purchasing power is also expected to weaken growth in India through the second half of this year, before a gradual recovery takes place in 2027.’ On the annual basis, it said India’s growth is expected to moderate from 7.8% in FY26 to 7.1% in FY27 and further to 6.5% in FY28. 

Among emerging-market economies, the OECD expects India to temporarily raise policy rates to help offset stronger inflationary pressures. In some emerging market economies, such as India, government price support measures are mitigating energy price pressures and will continue to do so in the near-term. The OECD projects India’s inflation to average 4.7 per cent in 2026. At the global level, it said economic prospects remain ‘heavily dependent’ on whether a durable resolution to the Middle East conflict is achieved.  

CNX Nifty touched high and low of 23,281.95 and 23,046.15, respectively. There were 3 stocks advancing against 47 stocks declining on the index.

The top gainers on Nifty were Cipla up by 1.16%, ONGC up by 0.89% and NTPC up by 0.18%. On the flip side, HDFC Life Insurance down by 6.16%, Bajaj Finance down by 5.87%, Axis Bank down by 4.56%, Bajaj Finserv down by 4.56% and Adani Enterprises down by 3.11% were the top losers.

European markets were trading mostly in red; France’s CAC fell 31.61 points or 0.39% to 8,091.80 and Germany’s DAX lost 34.13 points or 0.13% to 25,376.50, while UK’s FTSE 100 increased 10.32 points or 0.1% to 10,715.58.

Asian markets settled mostly lower on Thursday tracking Wall Street’s fall overnight, even as Japan's Nikkei gained as Japanese markets reopened after an extended holiday. Moreover, a rebound in crude oil prices and robust US economic data fuelled inflation concerns and reinforced expectations for further Federal Reserve rate hikes, while multi-decade high US Treasury yields also weighed on market sentiments. Further, Chinese markets declined, despite reports that the United States and China had agreed to extend their trade truce through January 10, 2027. Trading in South Korea’s Kospi index was closed in observation of the Chuseok (Autumn Harvest Festival) holiday.