New Delhi : A fresh wave of selling hit Dalal Street on Thursday, with the Sensex plunging over 2,500 points as oil prices surged and concerns. The Sensex ended 2496.89 points, or 3.26%, to 74,207.24, while the Nifty dropped 775.65 points to 23,002.15.
Crude oil prices have surged past $111 per barrel after escalating tensions in the Middle East, raising fears of prolonged disruption. At the same time, developments at HDFC Bank have added to investor nervousness, while global cues remain weak after the US Federal Reserve signalled limited room for rate cuts.
Higher oil prices can push up inflation, weaken the rupee and hit corporate margins, putting pressure across sectors. The latest escalation in the Middle East after Israel struck a key LNG facility in Iran has amplified these concerns, with investors worried that crude could remain elevated if tensions persist.
The stock fell over 5% to around Rs 800 after part-time chairman Atanu Chakraborty resigned, citing certain happenings and practices within the bank that were not in congruence with my personal values and ethics. The sharper fall in HDFC Bank compared to peers indicates a mix of stock-specific pressure and broader market weakness, adding to the overall negative sentiment.
The weakness was visible across the market, pointing to a broad-based sell-off rather than a sector-specific move. Larsen and Toubro dropped over 3%, while Bajaj Finance and Shriram Finance saw sharp declines. IT stocks such as Infosys, TCS and Wipro remained under pressure amid weak global cues.
Aviation stock IndiGo fell over 3% as rising fuel costs threaten margins, highlighting the immediate impact of higher crude prices. Even defensive names such as ITC and Hindustan Unilever traded lower, though declines were relatively limited.
Coal India was among the few stocks showing resilience, supported by higher energy prices. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the uncertainty around the conflict has intensified following the latest developments, pushing Brent crude to $111 per barrel.
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