Sensex Slumps Nearly 600 Points and Nifty Tests 22,600 as Brent Crude Tops $110

Indian benchmark equity indices fell sharply in early trade on Thursday, extending losses for a second consecutive session. A sharp escalation in crude oil prices, deep cuts across Asian equity markets, and a spike in domestic market volatility weighed heavily on investor sentiment across Dalal Street.

The NSE Nifty 50 declined as much as 1.11% to touch an intraday low of 22,557.95, down from the previous day's close of 22,811.35. Meanwhile, the 30-share BSE Sensex dropped as much as 0.96% to hit a low of 73,005.11. In early morning trade, the Nifty was trading 182.80 points, or 0.80%, lower at 22,628.55, while the Sensex shed 581.05 points, or 0.79%, to hover at 73,128.63.

Broader market indices faced even deeper cuts, with the Nifty Smallcap 100 tumbling 313.50 points, or 1.7%, to 18,173.80, and the Nifty Midcap 100 sliding 897.75 points, or 1.56%, to 56,668.10.

Three Key Triggers Behind Thursday's Market Decline:

• Crude Oil Tops $110 on Geopolitical Escalation: International benchmark Brent crude surged $1.29 to cross $110.11 per barrel after fresh strikes by Yemen's Houthi group targeted Saudi Arabian infrastructure, including a civilian airport and Saudi Aramco's Shaybah oilfield. The development prompted the United States to instruct select diplomats and families to leave mission posts, while reports pointed to heightened military readiness between the US, Israel, and Iran. Brent crude has now surged approximately 80% this year amid Persian Gulf disruptions. As India relies on imports for over 85% of its crude needs, sustained triple-digit oil prices pose severe risks of expanding the trade deficit and stoking domestic inflation.
• Asian Tech and AI Jitters Spill Over: Dalal Street detached from overnight gains on Wall Street—where the Dow Jones had added 0.69% and the Nasdaq rose 1.05%—and instead tracked severe weakness across Asian bourses. South Korea's Kospi dropped 3.1% to 5,557.67, Hong Kong's Hang Seng slumped roughly 3% to 22,945, and Japan's Nikkei 225 dropped 2.05% to 63,294. Disappointing earnings reports and growing scrutiny surrounding the return on capital from heavy artificial intelligence investments rattled Asian hardware makers, knocking shares of Samsung Electronics, SK Hynix, and Kioxia lower.
• Broad-Based Selling and Volatility Spike: The market breadth deteriorated severely on Thursday. On the BSE 500, only 46 stocks traded in positive territory against 451 declines. India VIX, the fear gauge measuring near-term expected volatility, jumped nearly 6% to 16.61.

Sectoral indices saw uniform pressure. The Nifty Metal index fell nearly 2%, while Nifty Auto declined 1.88%. Both Nifty FMCG and Nifty Pharma dropped 1.4% each. Among blue-chip constituents, only five Sensex stocks managed to hold green territory, with Power Grid Corporation of India leading losses with a 2.5% drop, alongside declines in Mahindra & Mahindra and Nestle India.

Tags: BSE Sensex NSE Nifty 50 India VIX Nifty Midcap 100 Nifty Auto Brent Crude