Indian equity markets started significantly lower on Thursday, following weak global trends driven by rising geopolitical tensions in the Middle East, causing a surge in crude oil prices. The Sensex dropped by 1,953 points or 2.55% to 74,750, while the Nifty also saw substantial selling pressure, falling by 580 points or about 2.4% initially before a slight recovery.
Various stocks like HDFC Bank, Shriram Finance, Larsen & Toubro (L&T), TMPV, Axis Bank, HDFC Life, and IndiGo experienced declines of up to 4% in morning trading. The market witnessed widespread selling across sectors, with financials and auto stocks leading the downturn. Notably, the Nifty Private Bank index fell over 3%, while the Nifty Financial Services, Nifty Auto, and Realty indices each dropped more than 2%.
The decline was triggered by a sharp increase in crude oil prices, with Brent crude futures surging nearly 5% to $112.83 per barrel, nearing its all-time high of $112.87. Meanwhile, WTI crude futures were trading at $100.02 per barrel. Analysts suggest that the Nifty’s immediate support lies in the 23,250–23,150 range, with resistance around 23,900–23,950. The Relative Strength Index (RSI) at 37.04 shows early signs of recovery from oversold levels, but sustained movement above resistance is required for momentum confirmation.
The spike in oil prices followed heightened tensions as Iran launched a missile attack on Qatar’s Ras Laffan gas facility, a major LNG hub globally. The situation escalated further with coordinated US-Israel airstrikes targeting Iran’s South Pars gas field and oil infrastructure in Asaluyeh, a crucial energy center. The significant early market decline erased most gains made earlier in the week, where both indices had risen by around 3%, with the Sensex gaining over 2,000 points and the Nifty about 600 points.
Asian markets also faced notable declines, with key indices like the Nikkei, the Hang Seng, and the KOSPI each dropping by up to 3%.
