The domestic equity benchmark indices declined during the early trade on Thursday amid elevated crude oil prices <a href="https://www.mid-day.com//news/world-news/article/unites-states-vice-president-jd-vance-iran-must-cut-nuclear-enrichment-to-end-war-23653921" target="_blank" rel="none noopener">due to the escalating geopolitical tensions</a> and sustained FII outflows.
The 30-share Sensex shed 322.21 points or 0.44 per cent at 72,316.49 in the initial deals. The 50-share Nifty slipped 113.30 points or 0.50 per cent at 22,490.75 in the early deals.
<h2>Gainers and laggards</h2>
Among the 30 Sensex constituents, only seven traded higher, with IT stocks leading. Tata Consultancy Services (TCS), Tech Mahindra, HCL Tech, Infosys were the major gainers.&nbsp;
The stocks of TCS rose 2.08 per cent, while those of Tech Mahindra jumped 1.99 per cent. Shares of HCL Tech and Infosys advanced 1.69 per cent and 1.68 per cent, respectively.&nbsp;Trent, Titan and Sun Pharma were the other gainers.
ITC, Adani Ports, Bharat Electronics, Bajaj Finserv and Power Grid were the laggards.
"The calibrated tightening stance of the RBI has implications for markets. With two more rate hikes of 25bp each likely in this rate hiking cycle, there will be pressure on valuations rising from higher fixed income returns. Investor preferences also might shift marginally towards interest inelastic segments like pharmaceuticals," V K Vijayakumar, Chief Investment Strategist, Geojit Investments said.
<h2>RBI hikes repo rate on Wednesday</h2>
On Wednesday, <a href="https://www.mid-day.com/business/business-news/article/rbi-mpc-rbi-hikes-repo-rate-to-55-per-cent-rules-out-rate-cuts-in-near-term-23653790" target="_blank" rel="none noopener">the Reserve Bank of India (RBI) hiked the repo rate by 25 basis points</a> for the first time in nearly four years. The apex bank further said rate cuts were off the table in the near term and changed its monetary policy stance to calibrated tightening from neutral.&nbsp;
The indices snapped their two-day winning streak, and the Sensex fell 429.11 points, or 0.59 per cent, to settle at 72,638.70, while the Nifty declined 173.05 points, or 0.76 per cent, to end at 22,603.05. The declining rupee amid the sustained foreign fund outflows and the elevated crude oil prices also weighed on the indices.
<h2>Weak global cues</h2>
"Sustained selling in large-caps by the FIIs have contributed significantly to this trend. With the US 10-year bond yield hovering above 5.3 per cent, FIIs will continue to sell on every rally. This will put the Nifty large-caps under pressure for some more time," Vijayakumar said.
Foreign Institutional Investors (FIIs) remained net sellers in the market offloading equities worth Rs 6,121.37 crore on Wednesday.
The <a href="https://www.mid-day.com/business/business-news/article/domestic-institutional-investors-net-investment-at-rs-85-lakh-crore-in-fy26-sebi-23643634" target="_blank" rel="none noopener">Domestic Institutional Investors (DII)</a> were net buyers, purchasing equities worth Rs 4,596.57 crore, on Wednesday, as per the exchange data.
Brent crude, the global oil benchmark, was trading higher by 2.17 per cent at USD 102.37 per barrel , according to news agency PTI.
"Global cues remain mixed, with Asian markets trading cautiously after a softer Wall Street session, while elevated oil prices and US Treasury yields continue to warrant attention," Hitesh Tailor, Technical Research Analyst at Choice Broking said.&nbsp;
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Hang Seng index all quoted lower.
(With inputs from PTI)

During the initial trade Sensex dropped 322.21 points or 0.44 per cent at 72,316.49, while the Nifty lost 113.30 points or 0.50 per cent at 22,490.75

Sensex, Nifty decline in early deals amid elevated crude oil prices, FII outflows

Sensex plunges 1,045 points amid surging crude oil prices, further rate hike fears

The 30-share Sensex shed 322.21 points or 0.44 per cent at 72,316.49 in the initial deals. The 50-share Nifty slipped 113.30 points or 0.50 per cent at 22,490.75 in the early deals

Sensex falls over 320 points in early deals amid elevated crude oil prices, FII outflows

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