Benchmark stock market indices tanked on Thursday, ending in red over concerns about rising crude oil prices as Middle East tensions rise after fresh Iran attacks. Sensex and Nifty fell over 3%.
The S&P BSE Sensex plummeted 2,496.89 points to close at 74,207.24, while the NSE Nifty50 tanked 775.65 points to end at 23,002.15.
Vishnu Kant Upadhyay – AVP, Research Advisory – Master Capital Services Limited, said that the sell-off was driven by a mix of global and domestic factors.
“Escalating tensions in West Asia have heightened uncertainty, leading to a broad-based risk-off sentiment. At the same time, rising crude oil prices, a sharp decline in HDFC Bank, continued FII outflows, and the U.S. Fed’s decision to keep interest rates unchanged further weighed on market sentiment,” he added.
After the closing bell, there were no gainers on Sensex as all stocks ended in the red. Among the worst performers, Eternal Ltd fell 5.65%, Bajaj Finance Ltd declined 5.42%, Mahindra and Mahindra Ltd dropped 5.25%, HDFC Bank Ltd slipped 5.13%, and Larsen and Toubro Ltd was down 4.72%, reflecting a sharp and broad-based sell-off in the market.
Sectorally, the pressure was most evident in downstream oil refiners, paint companies, tyre manufacturers, and aviation stocks, as elevated crude prices could lead to margin compression. In the near term, the outlook remains cautious.
“From a technical perspective, the Nifty erased the gains of the previous three sessions in a single move and breached the prior swing low around the 22,900 level during the day. These developments indicate that the corrective trend remains intact, with immediate support placed in the 22,500–22,800 zone,” said Ajit Mishra – SVP, Research, Religare Broking Ltd.
“Given the current market environment, participants are advised to align their positions with the prevailing trend. It is prudent to prefer option strategies over naked positions in the benchmark, while adopting a selective approach in stock-specific trades,” he added.
