Sensex plunges nearly 1,000 points, Nifty slips below 24,000 on oil price surge
MUMBAI — Indian equity benchmarks closed sharply lower as a spike in crude oil prices weighed on investor sentiment amid rising geopolitical tensions tied to stalled U.S.-Iran talks and disruptions at the Strait of Hormuz.
The Sensex fell 982.71 points, or 1.27 percent, to end at 76,681.29, while the Nifty dropped 275.10 points, or 1.14 percent, to settle at 23,897.95, slipping below the key 24,000 level.
Analysts said 24,000 has now emerged as a strong resistance level, with the previous support turning into a supply zone that is limiting recovery attempts.
“A decisive move above 24,000 is required to ease selling pressure and trigger a recovery towards 24,200, while a break below 23,800 could extend weakness towards the 23,600 level,” an analyst said.
The decline was led by information technology stocks, which saw heavy selling pressure.
Shares of Infosys, Tata Consultancy Services, and Tech Mahindra were among the biggest losers, dragging the Nifty IT index down by around 5 percent.
Broader markets also weakened, with the Nifty MidCap and Nifty SmallCap indices falling 0.96 percent and 0.87 percent, respectively.
Sectorally, IT, pharma, and media stocks ended in the red, contributing to the overall market decline. The metal index showed relative resilience, posting the smallest drop among sectoral indices.
Investor sentiment was hit by a sharp rise in global crude oil prices, with Brent crude climbing above $100 per barrel. The April futures contract was trading about 2.07 percent higher at $107.25 per barrel.
The surge in oil prices follows ongoing disruptions in energy supplies linked to the blockade at the Strait of Hormuz, a key global oil transit route.
Market participants remained cautious, as elevated crude prices are seen as inflationary and could widen India’s current account deficit, potentially affecting near-term economic stability.
“The week ended on a weak note, with no meaningful progress in Middle East ceasefire discussions and continued disruption in the Strait of Hormuz,” a market expert said. (Source: IANS)
