The Indian benchmark indices crashed on Thursday as the Sensex fell over 2,200 points to settle at 74,207.24 and the Nifty ended more than 700 points lower to close at 23,072.
Previously, during the early morning session, the BSE Sensex rang the opening bell near 75,300, crashing more than 1,400 points, while the NSE Nifty50 opened trading around 23,350, taking a hit of a little over 400 points, as of 9:15 AM.
Crude Oil Surge Weighs On Sentiment
The sharp fall in equities coincided with a spike in global oil prices. Brent crude rose 3.77 per cent to $111.4 per barrel, raising concerns for oil-importing economies such as India.
“Brent crude has shot up to $111. This is bad news for oil and gas importers like India. If Brent remains above $110 for an extended period of time, that will have negative implications for India’s macros,” said V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.
He added that markets remain highly sensitive to geopolitical developments and crude price movements.
Weak Global Cues Add Pressure
Global markets remained under pressure, further weighing on investor sentiment. Asian indices, including South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng, were trading significantly lower.
US markets had also ended sharply lower in the previous session, reflecting a broader risk-off mood.
“Sentiment has weakened significantly following a sharp surge in crude oil prices, as escalating tensions in the Middle East and reported attacks on key energy infrastructure have intensified concerns over supply disruptions,” said Ponmudi R, CEO of Enrich Money.
FII Selling Continues, DIIs Provide Support
Foreign Institutional Investors (FIIs) continued to reduce exposure, selling equities worth Rs 2,714.35 crore on Wednesday, according to exchange data.
Domestic Institutional Investors (DIIs), however, offered some support, buying stocks worth Rs 3,253.03 crore.
Ponmudi added that sustained FII outflows indicate a clear risk-off stance, impacting overall market stability.
Markets Had Extended Gains In Previous Session
On Wednesday, benchmark indices had ended nearly 1 per cent higher, marking a third consecutive day of gains, supported by easing crude prices and positive global cues.
The Sensex rose 633.29 points, or 0.83 per cent, to close at 76,704.13, after touching an intra-day high of 77,000.22.
The NSE Nifty advanced 196.65 points, or 0.83 per cent, to settle at 23,777.80.
The rally was broad-based, driven by short covering and value buying, with gains led by IT, realty and auto stocks, alongside strong participation from midcap and smallcap segments.
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