Indian Stock Market Falls Sharply as Middle East Tensions Push Oil Prices Higher

Indian Stock Market Falls Sharply as Middle East Tensions Push Oil Prices Higher​

Sensex Drops Nearly 2,000 Points, Nifty Slides Amid Global Weakness​

Mumbai, March 19 – Indian equity markets opened sharply lower on Thursday, mirroring weak global cues as escalating geopolitical tensions in the Middle East triggered a sharp spike in crude oil prices.

The BSE Sensex plunged 1,953 points or 2.55 percent to 74,750 in early trade. The NSE Nifty also came under significant pressure, falling 580 points or around 2.4 percent before staging a slight recovery.

Broad-Based Selling Across Sectors​

Selling pressure was visible across sectors, with financial and auto stocks leading the decline.

The Nifty Private Bank index dropped more than 3 percent, while Nifty Financial Services, Nifty Auto, and Realty indices each declined over 2 percent, reflecting widespread weakness in the market.

Among individual stocks, HDFC Bank, Shriram Finance, Larsen and Toubro, TMPV, Axis Bank, HDFC Life, and IndiGo fell as much as 4 percent during the morning session.

Oil Price Surge Weighs on Market Sentiment​

The sharp decline in equities coincided with a surge in crude oil prices.

Brent crude futures jumped nearly 5 percent to $112.83 per barrel, approaching its all-time high of $112.87. Meanwhile, West Texas Intermediate crude futures were trading at $100.02 per barrel.

The rise in oil prices followed escalating tensions in the Middle East after Iran launched a missile attack on Qatar’s Ras Laffan gas facility, one of the world’s largest LNG hubs.

The situation intensified further after coordinated airstrikes by the United States and Israel targeted Iran’s South Pars gas field and oil infrastructure in Asaluyeh, a key energy hub.

Earlier Gains Eroded by Market Sell-Off​

The sharp fall in early trade wiped out most of the gains recorded earlier this week. Both benchmark indices had risen around 3 percent, with the Sensex gaining over 2,000 points and the Nifty advancing about 600 points during that period.

Asian Markets Also Under Pressure​

The weakness was not limited to Indian markets. Asian equities also saw significant declines, with major indices such as the Nikkei, Hang Seng, and KOSPI falling by up to 3 percent.

Key Technical Levels for Nifty​

According to Hitesh Tailor, Research Analyst at Choice Broking, the immediate support for the Nifty is placed in the 23,250 to 23,150 range, while resistance is seen around 23,900 to 23,950.

He noted that the Relative Strength Index at 37.04 indicates early signs of recovery from oversold levels, but a sustained move above resistance will be required to confirm upward momentum.