Sensex, Nifty50 Slip As Global Oil Prices Fuel Inflation Fears

(RTTNews) - Despite data showing a faster pace of industrial output growth in the month of August, Indian shares opened on a weak note Tuesday morning and slipped deeper into the red subsequently as rising oil prices raised concerns about inflation and monetary tightening by global central banks.

Sustained selling by foreign portfolio investors over the past few sessions weighed as well on the market.

Brent crude futures front-month contract climbed to $107.30 a barrel, gaining more than 2%, amid concerns about energy supply following an impasse in U.S.-Iran talks to re-open the Strait of Hormuz.

As stocks from across several sectors reeled under selling pressure, the BSE benchmark Sensex and the National Stock Exchange's Nifty50, both dropped to six-month lows.

The Sensex, which fell to 72,064.00, was down 637.05 points or 0.88% at 72,134.67 a little while ago. The Nifty50 was down 198.60 points or 0.88% at 22,582.60.

In economic news, India's industrial production grew at a faster pace in August on robust manufacturing and electricity output, data from the National Statistics Office revealed Monday.

Industrial production logged an annual growth of 8% in August following an increase of 7.4% in July. Output was expected to climb 6.5%. The annual increase was driven by the 9% expansion in manufacturing and 12.3% rise in electricity and gas supply output.

During April to August, industrial production rose 6.7% from a year ago compared to a 4.2% rise in the same period of 2025.

Shares from automobile, banking, technology, FMCG, oil, metal, realty and consumer durables sectors shed notable ground. A few stocks from the healthcare sector found modest support

Bajaj Finance lost about 2.2%. HCL Technologies, Infosys, Kotak Bank, Axis Bank, HDFC Bank, Trent, Eternal, Titan, Reliance Industries, Hind Unilever, Mahindra & Mahindra, Bajaj Finserv and UltraTech Cement lost 1%-1.6%.

Maruti Suzuki, BEL, Power Grid Corporation, Tata Steel, Asian Paints, Larsen & Toubro and TCS also drifted notably lower.

Tata Motors Passenger Vehicles lost about 3.3%. Jio Financial Services and HDFC Life drifted down by 2.3% and 2.1%, respectively. Wipro, Bajaj Auto, Adani Enterprises, JSW Steel and Max Health declined 1%-1.6%.

Dr Reddy's Laboratories moved up 1.3%. Sun Pharmaceutical Industries and Cipla gained 0.6% and 0.3%, respectively.

With stocks from midcap and smallcap sections too reeling under selling pressure, the market breadth was weak.

On BSE, 2,648 shares were down in negative territory. 1,144 stocks moved higher and 232 stocks were little changed from previous closing levels.