Domestic equity markets declined for a second straight session on Thursday, with the BSE Sensex plunging 852.49 points as crude oil prices surged past the USD 100 per barrel level again amid stalled negotiations between the US and Iran.
Persistent foreign fund outflows, coupled with weak cues from Asian and European markets, further dampened investor sentiment. The 30-share Sensex dropped 852.49 points, or 1.09 per cent, to close at 77,664. During intraday trade, it had fallen as much as 942.31 points, or 1.20 per cent, to 77,574.18. The broader NSE Nifty 50 declined 205.05 points, or 0.84 per cent, to settle at 24,173.05. Among Sensex constituents, Trent, Bajaj Finserv, Tech Mahindra, Mahindra & Mahindra, Infosys and HDFC Bank were among the major losers.
On the other hand, Adani Ports, Larsen & Toubro, Sun Pharma, Bharti Airtel and Bharat Electronics ended in positive territory. Global oil benchmark Brent crude was trading 1.89 per cent higher at USD 103.8 per barrel. According to Hariprasad K, Research Analyst and founder of Livelong Wealth, Indian markets have extended their losing streak, with the Nifty declining over 400 points across the last two sessions. He noted that the recent price action signals a shift in market sentiment from resilience to risk aversion, as global uncertainties rise and domestic triggers remain weak.
He added that escalating geopolitical tensions in West Asia are the primary driver behind the current decline. Concerns over disruptions in the Strait of Hormuz have significantly hurt investor confidence, adding fresh uncertainty to global markets and pushing crude prices higher. For an import-dependent economy like India, this creates twin pressures—rising inflation expectations and strain on corporate margins. Foreign Institutional Investors (FIIs) sold equities worth ₹2,078.36 crore on Wednesday, according to exchange data.
Also read: Stocks retreat, oil prices rise across Europe and Asia
Across Asia, South Korea’s Kospi index ended higher, while Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng closed lower. European markets were also trading in the red during mid-session deals.
Vinod Nair, Head of Research at Geojit Investments Limited, said domestic equities saw broad-based selling as elevated crude prices above USD 100 per barrel—amid the ongoing deadlock in US-Iran talks—continued to weigh on sentiment. He added that the risk-off mood was exacerbated by weak global cues, sustained FII outflows, a weakening rupee, and rising US Treasury yields.
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