Mumbai: Indian equity markets witnessed a sharp decline on Thursday, reversing gains from the previous three sessions, as escalating global concerns and surging crude oil prices dampened investor sentiment. According to a report by the Free Press Journal, the benchmark BSE Sensex dropped 1,953 points, or 2.54%, to trade at 74,750 in early deals. Similarly, the NSE Nifty fell 580 points, or 2.43%, slipping below the crucial 23,200 mark to 23,197.
A key factor behind the steep fall was the sudden spike in global crude oil prices. Brent crude rose by 3.77% to $111.4 per barrel, raising concerns for India, which relies heavily on imports to meet its energy needs. Analysts caution that sustained high oil prices could fuel inflation, weaken the rupee, and weigh on overall economic growth.
Global market weakness further added to the pressure. Major Asian indices, including Japan’s Nikkei 225, South Korea’s Kospi, China’s Shanghai Composite, and Hong Kong’s Hang Seng, were trading lower. US markets had also ended in the red in the previous session, reinforcing negative sentiment across global equities.
Geopolitical tensions in the Middle East, coupled with fears of disruptions in energy supply, have made investors increasingly cautious. This uncertainty has triggered a broader risk-off approach in global markets.
Heavyweight stocks also contributed to the downturn. HDFC Bank declined more than 3% following the resignation of its chairman Atanu Chakraborty. Other major laggards included Larsen & Toubro, Axis Bank, Mahindra & Mahindra, and Bajaj Finance. In contrast, NTPC and Power Grid Corporation of India were among the few stocks that managed to stay in positive territory.
Additionally, continued selling by Foreign Institutional Investors (FIIs), who offloaded equities worth ₹2,714 crore on Wednesday, further intensified the market decline, signalling cautious global investor sentiment.
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