Domestic equity benchmarks remained under pressure on Thursday throughout the session and ended trading in red. The BSE Sensex settled the day around 76k, crashing more than 800 points, while the NSE Nifty50 closed trading around 23,650, bleeding a little over 200 points.
During the afternoon session, both indices stood in red as surging crude oil prices and heightened geopolitical tensions in West Asia continued to dampen investor sentiment. Weak global cues and persistent foreign fund outflows also added to the cautious mood in the market, analysts said.
Notably, in early trade, the Sensex initially plunged close to 1,000 points and stood at 75,871.18 in early trade, reflecting a sharp risk-off sentiment among investors. Similarly, the Nifty dropped 310.55 points to 23,556.30 at the start of the session.
However, as the day progressed, both indices recovered part of their losses.
Broader Markets
On the 30-share Sensex, NTPC, PowerGrid, Tech M, Reliance, and HCL Tech emerged among the only gainers in the session. On the other hand, the laggards were dominated by M&M, Maruti, Bajaj Finance, UltraTech Cement, and L&T.
In the broader markets, the Nifty Bank index led with a loss of 1.14 per cent. Sectorally, the Auto index bled more than 3 per cent. Meanwhile, the Chemicals index climbed 0.52 per cent.
Oil Price Spike And Geopolitical Tensions In Focus
A key trigger for the market’s decline was the sharp surge in global crude oil prices amid escalating geopolitical tensions involving the US, Israel and Iran in West Asia.
“Indian equity markets opened with a sharp gap-down, reflecting heightened global uncertainty and rising risk aversion among investors. The immediate trigger behind the decline is the sharp surge in crude oil prices, with Brent crude approaching the $100 per barrel mark following escalating geopolitical tensions involving the US, Israel and Iran in West Asia,” said Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm.
He added that the broader risk-off sentiment was also visible across global markets.
Previous Session Recap
In the previous session on Wednesday, the benchmark indices had already witnessed a sharp fall. The Sensex plunged 1,342.27 points, or 1.72 per cent, to close at 76,863.71, while the Nifty declined 394.75 points, or 1.63 per cent, to settle at 23,866.85.
With crude oil prices climbing, geopolitical tensions intensifying and foreign investors continuing to reduce exposure to domestic equities, market participants are likely to remain cautious in the near term while tracking global developments closely.
