Mumbai: Indian stock markets witnessed a sharp selloff in early trading on Thursday, with benchmark indices BSE Sensex and NSE Nifty 50 falling steeply as escalating tensions in West Asia rattled investor sentiment.
The Sensex dropped more than 2,000 points during the opening session, slipping to around 74,600 levels, while the Nifty fell below the 23,200 mark. The sudden downturn came after recent geopolitical developments, including attacks on key energy infrastructure in Iran, heightened concerns over global economic stability.
Heavyweight stocks across sectors led the decline. Major companies such as HDFC Bank, ICICI Bank, Reliance Industries, Infosys and State Bank of India saw significant losses, dragging the indices lower.
Selling pressure was widespread, with sectors including banking, IT, auto, financial services and real estate trading in the red. Broader markets also mirrored the weakness, as midcap and smallcap indices declined notably.
The steep fall erased investor wealth worth over ₹8 lakh crore within minutes of trading, reflecting the scale of the panic in the market. Market breadth remained negative, with a large majority of stocks declining compared to gainers.
Analysts attributed the slump primarily to rising crude oil prices, which surged amid fears of supply disruptions. India, being a major importer of oil, is particularly vulnerable to such spikes, which can strain the economy and impact corporate earnings.
Experts also pointed to continued selling by foreign institutional investors, adding to the pressure on domestic equities, although local institutional buying offered some support.
Market participants remain cautious as global uncertainties persist, with investors closely tracking developments in West Asia and movements in crude oil prices for further direction.
