Sensex Plunges 2,500 Points, Nifty Drops Sharply as Middle East Tensions Rattle Markets
MUMBAI — Indian stock markets tumbled sharply Thursday, with benchmark indices posting their steepest single-day losses in nearly two years, as escalating conflict in the Middle East and a surge in oil prices triggered widespread selling.
The Sensex fell 2,496.89 points, or 3.26 percent, to close at 74,207.24, while the Nifty dropped 775.65 points, also down 3.26 percent, ending the session at 23,002.15.
The sell-off was driven by a sharp spike in crude oil prices, which surged amid fears of supply disruptions tied to the ongoing conflict involving the United States, Israel, and Iran.
Brent crude jumped nearly 11 percent to $119.5 per barrel after reports that Saudi Arabia halted oil loading operations at the Yanbu port following damage to key refinery infrastructure.
Drone strikes reportedly hit facilities operated by Samref, while multiple refineries belonging to Saudi Aramco were said to have caught fire during the escalation.
Market volatility rose significantly during the session. The India VIX, often referred to as the market’s fear gauge, surged more than 22 percent before closing at similarly elevated levels, signaling heightened uncertainty among investors.
Broader markets mirrored the decline, with midcap and smallcap indices each falling about 3 percent as selling pressure intensified across segments.
Sectorally, auto stocks led the losses, followed by financial services and information technology shares. Rising oil prices typically weigh on auto companies due to higher fuel costs, while financial and IT stocks tend to be sensitive to global uncertainty.
Analysts said investor sentiment remained cautious, with markets reacting to geopolitical developments and growing concerns about the economic impact of prolonged conflict and elevated energy prices.
The sharp downturn underscores the vulnerability of global and domestic markets to geopolitical shocks, particularly when they disrupt critical energy supply chains. (Source: IANS)
