Mumbai, Oct 8: Indian equity markets came under renewed selling pressure on Thursday as rising crude oil prices, the Reserve Bank of India’s recent rate hike and persistent foreign investor outflows weighed on sentiment.

The Sensex fell sharply, while the Nifty 50 slipped below the 22,300 level during the session. The decline followed a weak close in the previous trading session, when the Sensex had dropped 429 points and the Nifty declined 0.8%.

A major concern for investors was the rise in international crude prices. Brent crude moved above $102 a barrel, driven by worries over potential disruptions to oil supplies amid escalating tensions involving the US, Israel and Iran. Rising oil prices are particularly significant for India because the country relies heavily on imports to meet its energy requirements.

Economic Growth And Corporate Earnings

Market sentiment was also affected by the RBI’s decision to raise the benchmark repo rate by 25 basis points to 5.5%, its first such increase in nearly four years. The move has raised concerns about borrowing costs and its possible impact on economic growth and corporate earnings.

Foreign institutional investors continued to sell Indian equities, with outflows exceeding Rs 6,100 crore on Wednesday, adding to the pressure. Domestic institutional investors, however, remained buyers.

Investors Track Crude Prices

Among sectors, IT stocks showed relative resilience, while several broader market segments declined. Analysts expect volatility to remain elevated as investors track crude prices, global bond yields, geopolitical developments and the upcoming corporate earnings season.