IT Meltdown & Oil Shock: Sensex Loses 1,829 Points as Hormuz Tensions Resume
BearishIndian equity markets posted their worst week in months, snapping a two-week recovery. The Nifty 50 lost 1.9% (-455 points) to close at 23,897.95 and the Sensex shed 2.3% (-1,829 points) to 76,664.21 — breaking decisively below the psychologically critical 24,000 mark on Nifty. Friday April 24 alone saw the Sensex tumble 982.71 points (-1.27%) and the Nifty give up 275.20 points (-1.13%) as FIIs dumped ₹8,827.87 crore in cash equities on a single session. Three forces converged: (1) the IT sector cracked over 5% as Infosys, HCL Tech, and TCS all delivered weak FY27 guidance — TCS recorded its first annual revenue dip in 20+ years; (2) US-Iran framework talks stalled in Pakistan, Hormuz blockade fears returned, and Brent crude surged ~16% on the week to $105.30/bbl; (3) the rupee weakened sharply to a fresh near-low of ₹94.26/USD on FII outflows and oil import worries. India VIX spiked 14.6% to 19.70, confirming fear has returned. Banks held up better — ICICI Bank delivered a strong Q4 print (PAT ₹14,755 Cr +9.2% YoY) — but the IT-led selloff dragged broader indices.
Key Points This Week
- 1Nifty 50 lost 1.9% (-455 pts) to close at 23,897.95 and Sensex shed 2.3% (-1,829 pts) to 76,664.21 — the worst weekly performance in months. Nifty broke decisively below the 24,000 mark. Friday April 24 alone: Sensex -982.71 pts (-1.27%), Nifty -275.20 pts (-1.13%). India VIX spiked 14.6% to 19.70. Bank Nifty held up better at 56,090 (-0.84%); midcaps -0.9%, smallcaps flat at +0.01%.
- 2IT bloodbath drove the index decline. HCL Tech crashed 16.6%, Infosys -12.4%, SBI Life Insurance -10.2%, Tech Mahindra -10.1%, and TCS -7.2% in a single week. TCS reported its first annual revenue decline in over 20 years. Infosys delivered cautious FY27 guidance that disappointed markets. The Nifty IT index plunged over 5% on the week, wiping out roughly ₹3 lakh crore in market capitalisation.
- 3FIIs intensified selling sharply — Friday April 24 alone saw outflows of ₹8,827.87 crore in cash equities, one of the largest single-session outflows of 2026. April cumulative FII outflows are now estimated above ₹55,000 crore. DIIs continued absorbing the selling pressure, supported by record SIP inflows from March (₹32,087 crore). Without the domestic floor, the index decline would have been materially worse.
- 4Brent crude surged ~16% on the week to $105.30/bbl — the sharpest weekly oil rally in months — as US-Iran talks scheduled in Pakistan stalled with no formal breakthrough. Iran signalled a guarded stance during FM Araghchi's visit; reports of renewed naval blockades and Israeli threats reignited risk premium. Hormuz shipping remains "largely closed" per Reuters/Lloyd's. The IEA had previously forecast Brent at $82 — that view is now under review.
- 5The rupee weakened sharply from 92.70 to ₹94.26/USD this week — a -1.7% depreciation that snapped three weeks of strength. The double-blow of $105 oil (raising import bill) and ₹8,827 Cr Friday FII outflow reignited current-account-deficit concerns. RBI was visibly active near the 94.50 zone but did not aggressively defend, accepting some weakness while preserving reserves.
- 6Q4 earnings split right down the middle. Strong: ICICI Bank PAT ₹14,755 Cr (+9.2% YoY), NII ₹22,979 Cr (+8.4%), ₹12/share dividend; HDFC Bank held up; Reliance FY26 full-year PAT ₹80,775 Cr (+15.98%) revenue ₹10.57 lakh Cr (+9.59%). Weak: Reliance Q4 PAT -12.55% YoY, the entire IT pack (Infosys, HCL Tech, Tech Mahindra, TCS) on FY27 guidance disappointment. Top gainers: Coal India +1.2%, Trent +1.1%, Nestle India +0.8%, Hindalco +0.7%, SBI +0.6%.
- 7Global decoupling: while Indian IT crashed, US tech set fresh records. S&P 500 closed at 7,165.08 (+0.55%), Nasdaq at 24,836.60 (+1.5% record), Dow at 49,230.71 (-0.44%). Philadelphia Semiconductor Index logged 18 consecutive sessions of gains; Intel surged 23.65% on strong Q2 forecast. Gold MCX traded volatile around ₹1,52,300/10g; Bitcoin held around $77,500. With Brent at $105 and rupee at 94.26, June RBI rate-cut probability has been pared back from 80%+ to ~50% in OIS markets.
SIP Investor Advice
This week perfectly illustrates why Systematic Investment Plans work. While IT investors saw 10-16% wipe-outs in just five trading days, SIP investors continued averaging into broad-based diversified funds at lower NAVs — accumulating more units for the next leg of recovery. Two weeks ago, markets were celebrating the Hormuz reopening; this week, oil is back at $105 and the IT pack is in correction. No SIP investor needs to predict these swings — they only need to keep the installment going. The Nifty has held the broader recovery zone above 23,800 even after this drop. With FII selling intensifying, Brent at $105, and rupee at 94.26, near-term volatility is likely to persist. But every additional unit purchased at these lower NAVs in flexi-cap, multi-cap, and large-cap regular plans compounds for the next 10-15 years. This is precisely when discipline pays — do not pause SIPs, do not panic-sell, and consider topping up if you have surplus cash. Speak to your Trustner Relationship Manager about whether your current SIP amount still reflects your long-term goals — and whether a tactical lump-sum allocation makes sense in the current correction.
Market data shown is illustrative/sample only. Not real-time. All information is for educational purposes and should not be construed as investment advice. Past performance does not guarantee future returns.