India Stocks Plunge as Foreign Funds Exit Amid Crude Oil Surge
The Indian stock markets continued their downward trend for the fourth consecutive day due to persistent negative investor sentiment. The key drivers behind this decline include relentless outflows by Foreign Institutional Investors (FIIs), high bond yields, and a fresh surge in crude oil prices.
Brent crude oil prices jumped 2.77% to $100.8 per barrel, while the US 10-year Treasury yield rose towards 5.34%. These external factors have raised concerns about the economic outlook for 2026-27. According to Vinod Nair, Head of Research at Geojit Investments Limited, 'the market sell-off has been driven largely by external factors...'
The major laggards among Sensex firms included Maruti, Mahindra & Mahindra, Tata Steel, and Adani Ports, while Infosys and TCS saw gains. The 30-share BSE Sensex dropped 570.59 points to settle at 71,909.70, while the Nifty tumbled 198.50 points to end at 22,421.95.
Harielvan Radhakrishnan, Founder & CEO of HST Wealth, warned that elevated US Treasury yields could sustain foreign selling pressure and weigh further on Indian equities. Foreign Institutional Investors offloaded equities worth Rs 10,148.41 crore on Wednesday.