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Key gauges end in deep red amid crude oil spike
Oct-08-2026

Falling for the second day running, Indian equity benchmarks experienced a significant decline on Thursday as a steep rise in global crude oil prices and concerns over prolonged tight monetary conditions rattled investor sentiment. Brent crude surged around 5 per cent and crossed the $105-per-barrel mark, stoking fears of persistent inflationary pressures.

Both indices ended lower with Sensex tanking 1,045 points while Nifty slipping to near 22,230 level, amid broad-based selling in heavyweight stocks. Power stocks remained the biggest drag, with Utilities and Metal were also under pressure. Also, Foreign Institutional Investors (FIIs) continued to offload equities, which also contributed to the market's negative sentiment.

Some of the important factors in trade: 

Business conditions across services sector strengthen in Q2:2026-27: The Reserve Bank of India (RBI) in its latest quarterly services and infrastructure outlook survey has showed that business conditions across the services sector strengthened in Q2:2026-27, with firms reporting improvement in turnover and full-time employment. 

Massive surplus liquidity in India's banking system to be absorbed within FY27 itself: RBI Governor Sanjay Malhotra has said the massive surplus liquidity in India's banking system will be absorbed within the current financial year itself (FY27), through various means such as currency leakage, the Reserve Bank's liquidity operations and banks' reserve requirements. 

FIEO raises concern over higher financial burden on exporters: Against the backdrop of 25 basis points policy repo rate hike by the Reserve Bank of India (RBI), apex exporters body - Federation of Indian Export Organisations (FIEO) has raised concerns over higher borrowing costs leading to rise in financial burden on exporters, particularly MSMEs, at a time when global trade is facing heightened uncertainty.

Auto stocks remain in watch: The Federation of Automobile Dealers' Association (FADA) has said that India’s electric vehicle (EV) retail sales increased 74.08 per cent year-on-year to 3,33,364 units in September 2026 as compared to 1,91,497 units in September 2025. 

Global front: European markets were trading lower as a broad global bond sell-off and surging oil prices revived inflation and interest-rate worries. Asian markets ended lower as technology stocks retreated on concerns over a surge in AI-related corporate debt. 

Finally, the BSE Sensex fell 1045.46 points or 1.44% to 71,593.24 and the CNX Nifty was down by 371.25 points or 1.64% to 22,231.80. 

The BSE Sensex touched high and low of 72,693.97 and 71,327.75, respectively. There were 3 stocks advancing against 27 stocks declining on the index. 

The top losing sectoral indices on the BSE were Power down by 3.51%, Utilities down by 3.38%, Metal down by 3.34%, Realty down by 3.07% and Capital Goods down by 3.02%, while there was no gaining sectoral index on the BSE. 

The top gainers on the Sensex were Tech Mahindra up by 0.44%, Axis Bank up by 0.25% and Infosys up by 0.21%. On the flip side, ITC down by 4.24%, Interglobe Aviation down by 3.36%, Power Grid down by 3.16%, Bharat Electronics down by 3.10% and Adani Ports &SEZ down by 2.59% were the top losers.

Meanwhile, With the aim of strengthening bilateral ties, India and the UK have reaffirmed the important role of the Financial Markets Dialogue (FMD) in supporting sustainable growth, deeper trade and investment ties, and resilient financial markets. The two sides welcomed constructive discussions under the FMD and acknowledged the contribution of the India-UK Financial Partnership (IUKFP) in identifying practical solutions and potential areas for deepening financial services links. The participants also reflected on the strengthening of bilateral ties, particularly in the context of the launch of Vision 2035, and stressed the importance of implementing the UK-India Comprehensive Economic and Trade Agreement (CETA), which entered into force on July 15, 2026.

Both sides agreed to drive progress across various workstreams, with updates to be reviewed through relevant bilateral mechanisms and at the next UK-India Economic and Financial Dialogue. The fourth UK-India Financial Markets Dialogue (FMD) took place on September 29 in London. The FMD is part of the broader economic engagement between India and the UK and focuses on strengthening cooperation in financial services and capital markets. The dialogue was led by senior officials from the finance ministry, Government of India, and economic and finance ministry of the UK.

It witnessed participation from Indian and the UK financial services regulatory authorities, including the Securities and Exchange Board of India (Sebi), the Reserve Bank of India (RBI), the International Financial Services Centres Authority (IFSCA), the Pension Fund Regulatory and Development Authority (PFRDA), and the Insurance Regulatory and Development Authority of India (IRDAI), the Bank of England (BoE), and the Financial Conduct Authority (FCA).

Both sides agreed on the importance of supporting responsible innovation and competition without compromising regulatory oversight. They exchanged perspectives on the potential opportunities and risks of artificial intelligence (AI) in financial services and agreed on the value of continued bilateral exchange and coordination through relevant international fora. India shared its digital onboarding process for retail financial services and committed to further share its experiences. Both sides also noted the risks posed by criminal adoption of new technologies to financial crime, including use of AI to commit fraud at industrial scale in so-called 'scam compounds' operating in foreign countries as well as risks to cyber security, data protection and operational resilience.

CNX Nifty touched high and low of 22,599.05 and 22,179.90, respectively. There were 3 stocks advancing against 47 stocks declining on the index.

The top gainers on Nifty were Infosys up by 0.50%, Tech Mahindra up by 0.34% and Axis Bank up by 0.20%. On the flip side, Adani Enterprises down by 5.36%, JSW Steel down by 4.46%, ITC down by 4.03%, Max Healthcare down by 3.81% and Interglobe Aviation down by 3.55% were the top losers. 

European markets were trading lower; UK’s FTSE 100 decreased 44.3 points or 0.42% to 10,414.20, France’s CAC fell 88.21 points or 1.14% to 7,681.00 and Germany’s DAX lost 260.76 points or 1.04% to 24,843.60.

Asian markets ended lower on Thursday as Brent crude prices climbed above the $104 per barrel mark and bond yields in international markets remained elevated. Market sentiment was further dampened by a decline in technology stocks fuelled by concerns over a surge in AI-related corporate debt and negative cues from Wall Street overnight. Investors remained cautious after the US Federal Reserve's latest meeting minutes confirmed that most officials expect another interest rate hike before the end of the year. Chinese market slipped after traders returned from the week-long Golden Week holiday. Meanwhile, Japan's Nikkei index dropped as investors booked profits following a rapid rally to a three-month high.

Asian Indices

Last Trade            

Change in Points

Change in %      

Shanghai Composite

3,811.90

-30.29

-0.79

Hang Seng

23,785.79

-344.71

-1.43

Jakarta Composite

6,031.28

-115.44

-1.91

KLSE Composite

1,601.01

-10.77

-0.67

Nikkei 225

69,042.11

-993.60

-1.42

Straits Times

5,412.96

-195.48

-3.49

KOSPI Composite

6,625.93

-177.97

-2.62

Taiwan Weighted

49,313.44

-492.93

-0.99
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