India Stocks Slide as Sensex Hits 32-Month Low Amid Oil and Rate Fears

Indian stocks fell sharply on Thursday, with the Sensex dropping to a 32-month low of 71,593.24. The Nifty 50 fell 1.64% to 22,231.8, its lowest level in 18 months. The selloff followed renewed pressure from rising oil prices, higher global bond yields and a weaker rupee.

Investor sentiment also weakened after the Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.5%. The RBI adopted a calibrated tightening stance, citing inflation risks linked to elevated oil prices and tighter global financial conditions. Foreign investors have also accelerated selling, with net outflows reaching about $4.86 billion over nine sessions.

The decline spread across the market, with all 16 major sectors falling. Small- and mid-cap indexes dropped more than 2%, while major banks and Reliance Industries also declined. Market conditions remain heavily oversold, but persistent crude prices and foreign selling could keep Indian equities volatile.