Indian shares declined amid rising Brent crude prices nearing $100 a barrel, heightening inflation fears, while defence stocks surged following a historic ₹1.1 lakh crore military procurement approval that favours domestic industries.
Indian shares extended their slide on Tuesday as Brent crude moved towards $100 a barrel, reviving worries about inflation, the current account and earnings pressure across import-sensitive sectors. The Sensex dropped more than 500 points to around 75,600, while the Nifty fell through 23,650, with banks, financial firms and oil and gas stocks among the main drags, according to India Today.
The weakness in the broader market came as the rupee also softened, reflecting the strain from higher energy costs. India imports most of its crude, so a sustained rise in oil prices can quickly feed into fuel, transport and input costs, complicating the outlook for both companies and policymakers.
Against that backdrop, defence shares stood out. According to reports from Financial Express and The Times of India, the Defence Acquisition Council, chaired by Defence Minister Rajnath Singh, has cleared proposals worth about ₹1.1 lakh crore for the three services, with roughly 98% of the outlay expected to go to domestic industry. The approved purchases include radars, advanced light helicopters, mine-laying systems and other military equipment, giving a strong lift to names such as Data Patterns, Bharat Electronics, Hindustan Aeronautics and Paras Defence.
The market was also being supported by a busy primary market. India Today reported that a dozen initial public offerings are lined up for the week, while listings from Arcil and other niche issuers are also in the pipeline. Elsewhere, copper and cable stocks were drawing interest after record commodity prices, and non-bank lenders were stepping up gold-financing businesses as volatility in bullion prices created fresh demand.
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