Mumbai, April 9, 2026, 17:41 IST
Indian stocks stumbled Thursday, erasing some of the gains from the previous day’s rally. Oil prices bounced back and uncertainty over the fragile Iran-U.S. ceasefire had investors shifting toward defensive plays. The Sensex dropped 931.25 points, or 1.20%, finishing at 76,631.65. The Nifty 50 slipped 222.25 points, or 0.93%, ending at 23,775.10.
This is a big deal for India, which relies on imports for roughly 90% of its oil needs. Higher crude prices tend to push up inflation, put pressure on the rupee, and complicate the Reserve Bank of India’s efforts to foster growth. The RBI pointed out this week that if crude moves 10% above its $85-a-barrel baseline, inflation could jump by 50 basis points—half a percentage point—while growth might slip by 15 basis points.
Whatever lift markets got on Wednesday didn’t last. Israeli strikes hit sites in Lebanon, and the Strait of Hormuz—the Gulf’s key shipping chokepoint—remained all but paralyzed. Just six ships made it through in the past day, compared to the daily average of roughly 140 before Feb. 28, ship-tracking data show.
Bank stocks took the brunt of the selling. The financials sector slid 1.4%, giving back a chunk of the prior session’s 5.5% jump. HDFC Bank slipped 2.3%. ICICI Bank dropped 2.1%. Losses hit 10 of the 16 key sectors.
Broader indices fared better than benchmarks. Mid-caps and small-caps ticked up, closing modestly in the green. The Nifty Metal index climbed 1.3% as Hindalco and Vedanta gained ground. IT names also lent some stability—TCS advanced 1.2% before posting a March-quarter beat on both revenue and profit. Results from Infosys, HCLTech and Wipro are still to come this month.
“Relief rallies are likely to recur in a market increasingly hostage to headlines,” said Siddharth Vora, fund manager and head of quant investment strategies at PL Capital. Ongoing Middle East conflict is still dampening sentiment. Reuters
Thursday saw some traders locking in gains after the Sensex’s sharp run—more than 5,600 points, up roughly 8% over just five days to kick off April. Overseas portfolio funds kept up their exit streak, making it 26 sessions in a row as net sellers on Wednesday. They dumped equities worth nearly 28.12 billion rupees. The rupee edged down 0.1% against the dollar, ending at 92.6575 on Thursday.
Siddhartha Khemka, who runs research for wealth management at Motilal Oswal Financial Services, described the session as the market “taking a breather” after Wednesday’s rally. Over at Geojit, Vinod Nair warned that if crude doesn’t pull back from these levels, the risk of earnings downgrades for FY27 is back on the table. The Economic Times
It wasn’t just Mumbai feeling the squeeze. Japan’s Nikkei dropped 0.7%, South Korea’s Kospi gave up 1.6%, and Chinese blue chips edged down 0.6%. Over in Europe, the STOXX 600 kicked off down 0.2% as traders pulled back from the risk-on push seen Wednesday.
Markets are watching Saturday’s talks between Iranian officials and the U.S. team led by Vice President JD Vance for any sign of a breakthrough. A pickup in Hormuz shipping alongside softer Brent could help Indian shares regain their footing. Without progress, though, pricier fuel and a sliding rupee are likely to weigh on stocks, with traders ready to jump on every Middle East update.
