Dalal Street Bleeds as Crude Hits $105; FIIs Offload ₹3,255 Crore Amid Geopolitical Storm

Market Snapshot

The Indian equity markets faced a turbulent session on Thursday, with the BSE Sensex and NSE Nifty 50 both closing over 0.8% lower. The Sensex plummeted 852.49 points to settle at 77,664, while the Nifty 50 ended at 24,173.05, down 205.05 points. The market sentiment was dominated by a risk-off mood as Brent crude prices soared toward $105 per barrel, fueled by the ongoing blockade at the Strait of Hormuz and the breakdown of diplomatic negotiations.

Institutional Flows: Cash Market

Provisional data for April 23, 2026, revealed a significant divergence in institutional activity as foreign outflows intensified:

• Foreign Institutional Investors (FIIs) were aggressive net sellers in the cash segment, offloading shares worth ₹3,254.71 crore.
• Domestic Institutional Investors (DIIs) provided a modest cushion to the fall, recording a net purchase of ₹941.35 crore.

The heavy selling by FIIs continues to weigh on index heavyweights, particularly in the banking and IT sectors, where institutional ownership remains high.

Derivatives Market Activity

Activity in the F&O segment reflected heightened anxiety and a shift toward defensive positioning. The India VIX, a gauge of market volatility, rose by 3% to settle at 18.84, indicating growing nervousness among traders.

• FIIs maintained a distinctly bearish stance in index derivatives, selling approximately 2.53 lakh index future contracts against only 0.70 lakh buy contracts.
• In the options segment, there was a surge in Put buying by FIIs, with over 8.19 lakh contracts purchased, signaling a strong demand for downside protection.
• Retail investors appeared more optimistic, remaining net buyers of Call options, though the overall Put-Call Ratio (PCR) remained subdued at 0.85.

Key Drivers and Outlook

The primary catalyst for the day's decline was the deepening energy crisis. Stalled negotiations between the U.S. and Iran led to fears of a prolonged supply disruption, pushing Brent crude past the $100 mark for the first time in months. Domestically, the Indian rupee's slide past the 94-per-dollar mark further dampened sentiment, raising concerns over imported inflation.

While defensive sectors like Pharma showed resilience—with Dr. Reddy's and Cipla emerging as top gainers—the heavyweight banking sector dragged the indices down. Looking ahead, the market outlook remains cautious with a focus on:

• Geopolitical developments in the Middle East and the status of the Strait of Hormuz blockade.
• The upcoming Q4 FY26 earnings from major IT and banking players, which will dictate sectoral rotations.
• Technical support for the Nifty 50, which is currently testing its 50-day Exponential Moving Average (EMA) near the 24,100 level.

TAGS: FII, DII, Stock Market, Institutional Investors, Nifty, Sensex

Tags: FII DII Stock Market Institutional Investors Nifty Sensex