Stock markets plummet over 3% due to soaring crude oil prices and weak global cues. Sensex and Nifty see biggest drop since June 2024.

Photograph: Francis Mascarenhas/Reuters

Key Points

• Sensex and Nifty both plummeted over 3% due to surging crude oil prices and escalating tensions in West Asia.
• The BSE Sensex experienced its biggest single-day plunge since June 2024, dropping 2,496.89 points.
• Global oil benchmark Brent crude soared by 6.75% following attacks on energy infrastructure in Qatar and Kuwait.
• HDFC Bank shares declined after its chairman resigned, citing ethical concerns, contributing to the market downturn.
• Foreign Institutional Investors (FIIs) offloaded equities, further contributing to the market’s negative performance.

Benchmark stock indices Sensex and Nifty plummeted by over 3 per cent on Thursday as a sharp jump in crude oil prices and weak global trends, amid escalating strikes on energy infrastructure in West Asia, unnerved investors.

The 30-share BSE Sensex tanked 2,496.89 points or 3.26 per cent – its biggest single-day plunge since June 2024 — to settle at 74,207.24. During the day, it dived 2,753.18 points or 3.58 per cent to 73,950.95.

The 50-share NSE Nifty tumbled 775.65 points or 3.26 per cent to end at 23,002.15.

From the 30-Sensex firms, Eternal, Bajaj Finance, Mahindra & Mahindra, HDFC Bank, Larsen & Toubro and Bajaj Finserv were among the major laggards.

Factors Contributing to the Market Decline

HDFC Bank dropped 5.13 per cent after its chairman, Atanu Chakraborty, resigned, citing ethical concerns.

Brent crude, the global oil benchmark, soared 6.75 per cent to $114.8 per barrel after Iran attacked a key natural gas facility in Qatar as well as two oil refineries in Kuwait.

Iran intensified its attacks on its Gulf Arab neighbours’ energy sites on Thursday, hitting a Saudi refinery on the Red Sea and setting Qatari LNG facilities and two Kuwaiti oil refineries ablaze as it struck back following an Israeli attack on its main natural gas field.

Global Market Performance

In Asian markets, South Korea’s benchmark Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended significantly lower.

Markets in Europe were trading with deep losses. The US market ended sharply lower on Wednesday.

Investment Trends

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,714.35 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 3,253.03 crore.