Stock Market crash: Extending the previous session losses, Indian equity benchmark indices Sensex and Nifty 50 were trading sharply lower on Thursday, amid weakness in global markets as the recent escalation in the US–Iran situation and elevated crude oil prices hit the investor sentiment.
Around 10:10 AM, the BSE Sensex benchmark was down 432 points, or 0.55 per cent, at 78,084.40. The NSE Nifty50 slipped 156.25 points, or 0.64 per cent, to 24,221.85.
The Sensex touched a low of 77,693, down 823.43 points, or 1 per cent. Likewise, the Nifty 50 hit an intraday low of 24,134.8, down 243.3 points, or 1 per cent.
On the sectoral front, the Nifty Auto and Consumer Durables indices fell by over 1 per cent each. Nifty Bank, Financial Services, IT, Metal, Realty, and Oil & Gas were also trading lower. On the contrary, Nifty Pharma and Healthcare jumped over 2 per cent each, followed by Nifty Media, FMCG, and Chemicals.
In the broader markets, Nifty Midcap 100 and Nifty Smallcap 100 were trading on a flat note.
Meanwhile, India VIX rose to 18.6 levels, up by more than 1.5 per cent, indicating heightened volatility and caution in the near term.
In today's sell-off, investors lost around ₹47,636 crore, as the total market capitalisation of all BSE-listed companies slipped to ₹468.63 trillion, compared with the previous session's all-India market capitalisation of ₹469.10 trillion.
Here's why markets are falling today:
US-Iran tensions escalate: US President Donald Trump extended the April 22 deadline for a ceasefire with Iran, but tensions remained elevated. The US Navy continued its blockade of Iranian ports, while Iran's Islamic Revolutionary Guard Corps (IRGC) seized at least two vessels in the Strait of Hormuz.
Following the collapse of the previous round of negotiations, Pakistan had been expected to host fresh talks. However, rising scepticism surrounds the likelihood of these discussions, with the White House cancelling Vice President JD Vance’s planned visit to Islamabad after Iran pushed back against renewed diplomatic efforts.
Ponmudi R, chief executive officer at Enrich Money, said the sharp rise in crude oil prices above $103 per barrel remains the key concern, intensifying fears around inflation, India’s import bill, and overall macroeconomic balance, thereby triggering broad-based selling.
Crude oil regains $100/barrel mark: The risks around the Strait of Hormuz, a critical global energy corridor, have pushed Brent crude prices above the $100 per barrel mark. On Thursday, Brent crude rose 1.41 per cent to $103.35 per barrel, while US West Texas Intermediate (WTI) crude was up 1.69 per cent at $94.53.
VK Vijayakumar, chief investment strategist at Geojit Investment, said that with the duration of the war going beyond everyone’s initial expectations and the price of Brent crude bouncing back to $103, there is increasing risk to global growth in general and higher risk to India’s macros in particular.
"If Brent crude remains at an average of $100 for many months, India’s growth and corporate earnings will take a hit. The market has not discounted this yet," he added.
Weak global cues: Asian markets erased early gains and turned lower as investor sentiment weakened following reports that the US had intercepted at least three Iranian oil tankers in Asian waters, raising concerns that the Middle East conflict could be prolonged. Last checked, Japan's Nikkei 225 index was down 1 per cent, Hong Kong's Hang Seng fell 1.12 per cent, and South Korea's KOSPI was down 0.65 per cent.
The US markets settled sharply higher in the previous session, with the S&P 500 and Nasdaq closing at fresh highs. The S&P 500 futures slipped 0.56 per cent, Nasdaq 100 futures fell 0.57 per cent, while Dow Jones Industrial Average futures declined 334 points, or 0.67 per cent.
According to Ponmudi, global sentiment continues to stay subdued with Asian markets trading lower, offering limited support to domestic equities. The Indian rupee is also facing renewed pressure, reflecting the impact of higher crude prices and persistent foreign outflows, which are adding to overall market volatility.
"The near-term sentiment remains cautious to negative and highly news-driven, with volatility expected to stay elevated and downside risks prevailing unless geopolitical tensions ease," he said.
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