Indian Stock Market Crash: Sensex and Nifty See Steepest Fall in Nearly Two Years Amid Oil Price Surge

Indian Stock Market Crash: Sensex and Nifty See Steepest Fall in Nearly Two Years Amid Oil Price Surge​

Benchmark Indices Drop Over 3% Amid Global Tensions​

Mumbai, March 19: Indian stock markets witnessed a sharp decline on Thursday as escalating geopolitical tensions and a surge in crude oil prices weighed heavily on investor sentiment.

The benchmark indices recorded their steepest single-day fall in nearly two years. The Nifty fell by 775.65 points, or 3.26 percent, to close at 23,002.15, while the Sensex declined by 2,496.89 points, also down 3.26 percent, to settle at 74,207.24.

Crude Oil Spike Triggers Market Sell-Off​

The market downturn was primarily driven by a sharp rise in crude oil prices amid fears of supply disruptions. Brent crude surged nearly 11 percent to $119.5 per barrel.

The increase followed reports of disruptions to key oil infrastructure. Saudi Arabia reportedly halted oil loading at the Yanbu port after damage to major refinery facilities. Drone strikes targeted Samref facilities, while several refineries owned by Aramco caught fire during the escalation in the US-Iran conflict involving Israel.

Volatility Surges as India VIX Jumps Over 22%​

Market volatility rose sharply during the session, reflecting heightened uncertainty among investors. The India VIX surged over 22 percent during the day and closed at a similarly elevated level, indicating continued nervousness in the near term.

Broader Markets Also Decline​

The broader markets mirrored the weakness in benchmark indices. Mid-cap and small-cap indices declined around 3 percent each, reflecting widespread selling pressure.

Auto, Financial and IT Stocks Lead Losses​

Sector-wise, the auto sector was the worst hit, followed by financial services and IT stocks, all of which witnessed heavy selling pressure during the session.

Cautious Market Sentiment Persists​

Overall sentiment remained cautious as investors reacted to geopolitical developments and assessed the potential economic impact of prolonged conflict and rising energy costs.