Mumbai (Gurpreet Singh): Indian stock markets faced a sharp sell-off on Thursday as rising geopolitical tensions and a spike in oil prices rattled investor confidence.
The BSE Sensex dropped over 1,300 points to trade near 71,800, while the Nifty 50 fell by more than 400 points, slipping to around 22,300 levels during early sessions.
The decline followed strong remarks by US President Donald Trump regarding the ongoing conflict involving Iran, which dampened hopes of a near-term resolution and triggered a surge in energy prices.
Brent crude rose sharply, crossing the $105 mark per barrel, intensifying concerns for import-dependent economies like India. Higher crude prices are likely to impact inflation and corporate margins, especially in sectors sensitive to fuel costs.
Global markets mirrored the cautious sentiment, with US Dow futures sliding significantly, indicating a weak start for international equities as well.
Traders pointed out that the final trading session of the week is witnessing heightened volatility, partly due to derivative expiry and ongoing developments in global markets. Key technical levels remain in focus, with 23,000 acting as a crucial threshold for the Nifty, while banking stocks are also under pressure.
Meanwhile, the reopening of currency markets after a holiday is expected to bring fresh movement, particularly in response to recent signals from the Reserve Bank of India.
As earnings season begins and global uncertainties persist, market participants are likely to remain watchful, with volatility expected to continue in the near term.
