Benchmark equity indices ended sharply lower on Thursday, with the Sensex plunging more than 800 points as a spike in crude oil prices amid escalating tensions in West Asia weighed heavily on investor sentiment.
Market participants were also unsettled by weak global cues, a decline in the rupee and continued foreign fund outflows, analysts said. In a volatile trading session, the 30-share BSE Sensex dropped 829.29 points, or 1.08 per cent, to close at 76,034.42. During intraday trade, the index had fallen as much as 992.53 points, or 1.29 per cent, to hit 75,871.18.
Overall market breadth on the BSE remained negative, with 2,516 stocks declining, 1,713 advancing and 175 remaining unchanged. Meanwhile, the 50-share NSE Nifty 50 slipped 227.70 points, or 0.95 per cent, to settle at 23,639.15.
“Geopolitical tensions in the Middle East continue to dampen global risk appetite. Fresh attacks on oil-shipping vessels have pushed crude prices closer to USD 100 per barrel, heightening concerns about inflation and possible gas supply disruptions,” said Vinod Nair, Head of Research at Geojit Investments Limited.
He added that the market is witnessing broad-based consolidation, though selective buying has emerged in renewable energy and utility stocks. In the near term, sustained risk-off sentiment and ongoing foreign institutional investor (FII) outflows may keep both equities and the rupee under pressure.
However, Nair noted that India’s premium market valuations have moderated this year, making the market more attractive for long-term investors and limiting downside risks.
Among Sensex constituents, Mahindra & Mahindra was the biggest loser, dropping 4.23 per cent. Other major laggards included Maruti Suzuki, Bajaj Finance, Larsen & Toubro, UltraTech Cement and Trent Limited.
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On the other hand, gains were seen in stocks such as NTPC, Power Grid Corporation of India, Tech Mahindra, HCLTech and Reliance Industries.
Broader markets also ended lower, with the BSE smallcap select index declining 0.65 per cent and the midcap select index slipping 0.55 per cent.
Among BSE sectoral indices, the auto index dropped 2.92 per cent, followed by FMCG (1.62 per cent), consumer discretionary (1.59 per cent), realty (1.53 per cent), private banks (1.45 per cent) and the top 10 banks index (1.29 per cent).
In contrast, utilities rose 3.31 per cent, while power gained 2.51 per cent. Energy climbed 1.06 per cent, capital goods added 0.55 per cent, oil and gas advanced 0.52 per cent, and metal stocks edged up 0.45 per cent.
Meanwhile, Brent Crude, the global oil benchmark, surged 4.78 per cent to USD 96.47 per barrel. “The absence of clear signs of de-escalation in Middle East geopolitical tensions continues to unsettle global markets and push crude oil prices higher,” said Ajit Mishra, Senior Vice President (Research) at Religare Broking Ltd.
He noted that oil prices have rebounded after a recent dip and are hovering around the USD 97 level, raising concerns over inflationary pressures, currency weakness and the potential impact on India’s trade balance. “Elevated market volatility has also dampened risk appetite among investors,” he added.
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