Indian equity benchmarks BSE Sensex and Nifty 50 extended losses on Thursday, trading sharply lower amid weak global cues and rising geopolitical tensions involving United States and Iran, which pushed crude oil prices higher and dented investor sentiment.
Around 10:10 am, the Sensex was down 432 points, or 0.55%, at 78,084.40, while the Nifty 50 slipped 156 points, or 0.64%, to 24,221.85. Both indices had earlier fallen nearly 1% in intraday trade.
Broad-based selling, selective buying
Selling pressure was visible across sectors, with auto and consumer durables stocks leading declines. Banking, financials, IT, metals, realty, and oil & gas indices also traded in the red. In contrast, pharma and healthcare stocks gained over 2%, offering some support, while FMCG and media stocks edged higher.
Broader markets remained largely flat, with midcap and smallcap indices showing limited movement.
Volatility rises, market cap slips
The India VIX climbed to around 18.6, signalling heightened market volatility and caution. Investors saw a notional erosion of about ₹47,636 crore in wealth, as total market capitalisation of BSE-listed firms declined to ₹468.63 trillion.
Key triggers behind the fall
Geopolitical tensions:
Escalating tensions in the Middle East, including continued US naval action and disruptions in key shipping routes, have raised concerns about a prolonged conflict. Developments around the Strait of Hormuz—a critical oil transit route—have further unsettled markets.
Crude oil surge:
Global crude prices have surged, with Brent crude rising above $103 per barrel and West Texas Intermediate nearing $95. Elevated oil prices heighten concerns over inflation, India’s import bill, and overall macroeconomic stability.
Market experts warn that sustained crude prices around $100 per barrel could weigh on India’s growth outlook and corporate earnings.
Weak global cues:
Asian markets turned negative, with Japan’s Nikkei 225, Hong Kong’s Hang Seng, and South Korea’s Kospi all trading lower, reflecting global risk aversion. US futures also declined after a strong previous session, indicating cautious sentiment worldwide.
Outlook
Analysts say the near-term outlook remains cautious and highly sensitive to geopolitical developments. Persistent high crude prices, currency pressure, and foreign fund outflows are likely to keep volatility elevated, with downside risks unless tensions ease.
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