MUMBAI — Indian equity markets tumbled sharply Thursday as escalating tensions in the Middle East and a spike in global oil prices rattled investor sentiment, pushing benchmark indices to their steepest single-day decline in nearly two years.
The Nifty fell 775.65 points, or 3.26%, to close at 23,002.15, while the Sensex dropped 2,496.89 points, also 3.26%, to end at 74,207.24.
The sell-off followed a sharp surge in crude oil prices amid fears of supply disruptions tied to the ongoing conflict involving the United States, Israel, and Iran.
Brent crude jumped nearly 11% to $119.50 per barrel after reports that Saudi Arabia halted oil loading at the Yanbu port following damage to key refining infrastructure.
Drone strikes reportedly hit facilities operated by Samref, while multiple refineries owned by Aramco caught fire during the escalation in the U.S.-Iran conflict.
Market volatility also spiked during the session, with the India VIX rising more than 22%, reflecting heightened uncertainty among investors. The volatility index remained elevated at the close, signaling continued nervousness in the near term.
Broader markets mirrored the weakness, with midcap and small-cap indices each declining about 3%.
Sector-wise, auto stocks led the losses, followed by financial services and IT shares, all of which faced heavy selling pressure.
Rising oil prices tend to weigh on auto companies due to higher fuel costs, while financial and IT stocks are often sensitive to global uncertainty.
Analysts said overall sentiment remained cautious as investors assessed the geopolitical situation and its potential economic impact, particularly if elevated energy prices persist. (Source: IANS)
