Sensex, Nifty Fall Sharply After Three-Day Rally as Crude Oil Surge Weighs on Markets
Indian Stock Market Opens Lower Amid Weak Global Cues and FII Outflows
Mumbai, March 19: Indian benchmark indices Sensex and Nifty declined sharply in early trading on Thursday, snapping a three-day rally, as a surge in crude oil prices and weak global market trends dampened investor sentiment.The 30-share BSE Sensex plunged 1,953.21 points, or 2.54 percent, to 74,750.92 during opening trade. Similarly, the NSE Nifty dropped 580.05 points, or 2.43 percent, to 23,197.75.
Banking and Heavyweight Stocks Lead Losses
Among Sensex constituents, HDFC Bank fell over 3 percent following the resignation of its chairman Atanu Chakraborty, who stepped down citing ethical concerns.Other major laggards included Larsen and Toubro, Axis Bank, Mahindra and Mahindra, Eternal, and Bajaj Finance, contributing significantly to the market decline.
On the other hand, NTPC and Power Grid were the only stocks that managed to trade in positive territory.
Crude Oil Price Spike Raises Macro Concerns
Global crude oil prices surged sharply, adding pressure on equity markets. Brent crude, the international benchmark, rose 3.77 percent to USD 111.4 per barrel.Market participants flagged concerns over the impact of elevated oil prices on India’s macroeconomic indicators, particularly given the country’s dependence on oil imports. Sustained crude prices above USD 110 per barrel could negatively affect economic stability.
Global Markets Trade Lower Amid Rising Geopolitical Tensions
Asian markets mirrored the negative trend, with key indices such as South Korea’s Kospi, Japan’s Nikkei 225, China’s Shanghai SSE Composite, and Hong Kong’s Hang Seng trading significantly lower.The weakness followed a sharp decline in US markets on Wednesday, reflecting global risk aversion amid escalating tensions in the Middle East and concerns over potential supply disruptions.
FII Selling Continues to Pressure Market Sentiment
Foreign Institutional Investors continued their selling streak, offloading equities worth Rs 2,714.35 crore on Wednesday, according to exchange data.In contrast, Domestic Institutional Investors provided some support by purchasing stocks worth Rs 3,253.03 crore.
Persistent FII outflows indicate a cautious risk-off stance among global investors, which continues to weigh on overall market stability.
Previous Session Performance
In the previous trading session on Wednesday, the markets had closed on a strong note. The Sensex gained 633.29 points, or 0.83 percent, to settle at 76,704.13, while the Nifty rose 196.65 points, or 0.83 percent, to end at 23,777.80.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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