Oil surge triggers market bloodbath
Sensex, Nifty hit near one-year lows | All sectors in red as geopolitical risks intensify | `12.87 lakh crore investors’ wealth eroded
image for illustrative purpose
Mumbai: Equity markets witnessed a sharp sell-off on Thursday, with benchmark indices plunging over 3 per cent amid rising crude oil prices and weak global cues triggered by escalating geopolitical tensions in West Asia.
The 30-share BSE Sensex crashed 2,496.89 points (3.26%) to close at 74,207.24, marking its steepest fall since June 2024 and its lowest level since April 2025. During intraday trade, it dropped as much as 2,753 points.
Similarly, the NSE Nifty 50 tumbled 775.65 points (3.26%) to settle at 23,002.15, erasing gains from the previous three sessions.
Equity investors’ wealth eroded by Rs 12.87 lakh crore on Thursday as stock markets went into a tailspin, with the benchmark Sensex plunging over 3 per cent, pressured by a spike in crude oil prices due to increasing attacks on energy infrastructure in West Asia. Investors have lost over Rs 37 lakh crore since the West Asia crisis erupted on February 28.
The sell-off was broad-based, with all sectoral indices ending in the red. Auto, realty, financial services and IT stocks led the decline. Midcap and smallcap indices also fell sharply, indicating widespread market weakness.
Among Sensex stocks, major losers included Bajaj Finance, Mahindra & Mahindra, Larsen & Toubro and HDFC Bank. HDFC Bank dropped over 5 per cent following the resignation of its chairman over ethical concerns.
Investor sentiment was hit after Brent crude oil prices surged nearly 7 per cent to around $114.8 per barrel following attacks on energy infrastructure in Qatar, Kuwait and Saudi Arabia. The escalation in tensions, involving Iran’s strikes on Gulf facilities, raised fears of prolonged supply disruptions and higher inflation globally.
Weak global markets further added pressure. Asian indices such as Nikkei, Hang Seng and Kospi ended lower, while European markets also traded in the red. The US markets had closed sharply down in the previous session.
Foreign Institutional Investors (FIIs) continued to sell, offloading equities worth Rs 2,714 crore, though Domestic Institutional Investors (DIIs) provided some support through buying.
Analysts noted that a combination of geopolitical risks, rising oil prices and a hawkish US Federal Reserve outlook significantly altered risk perception, leading to a sharp reversal in Indian equities.
