Indian stock markets experienced a significant decline on Thursday due to escalating global tensions and a sudden increase in oil prices. The conflict involving the US, Israel, and Iran disrupted crucial energy infrastructure, leading to a sharp fall in the benchmark indices, Nifty and Sensex. Both indices recorded their most substantial single-day drop in nearly two years.
The Nifty closed at 23,002.15 after plummeting by 3.26%, shedding 775.65 points, while the Sensex settled at 74,207.24 with a 3.26% decline, losing 2,496.89 points. The sell-off was triggered by a surge in crude oil prices, raising concerns about potential supply disruptions.
Amid reports of Saudi Arabia halting oil loading at the Yanbu port due to refinery damage, Brent crude prices surged by almost 11% to $119.5 per barrel. Drone strikes on Samref’s facilities and fires at Aramco’s refineries during the US-Iran conflict escalation contributed to the oil price spike.
Market volatility soared during the day, with the India VIX surging over 22%, reflecting increased uncertainty among investors. The VIX closed nearly 22% higher, indicating ongoing nervousness in the market in the short term. The broader markets also witnessed weakness, with midcap and smallcap stocks declining by around 3% each.
