Sensex Drops 364 Points, Nifty Below 24,000 After US Strike
- Sensex fell 364 points, Nifty dropped below 24,000
- Market decline triggered by US air strike
- Geopolitical tensions weigh on investor sentiment
Markets Open Lower on Geopolitical Jitters
Indian equity benchmarks took a hard knock on Thursday as a US air strike sent shockwaves through global markets. The BSE Sensex tumbled 364 points, while the NSE Nifty slipped below the crucial 24,000 level.
Investors rushed to trim positions, fearing an escalation in geopolitical tensions. The US strike, details of which are still emerging, was cited by traders as the primary trigger for the sell-off across Asia.
Broad-Based Selling Across Sectors
The sell-off was not limited to a few stocks. All major sectoral indices ended in the red. Banking, auto, and IT stocks faced the brunt of the selling pressure, with heavyweight stocks dragging the benchmarks lower.
Market breadth was negative, with declining shares outpacing advancing ones by a wide margin on both the BSE and NSE. Midcap and smallcap stocks also suffered, wiping out recent gains.
Defensive Plays and Safe Havens
As risk appetite evaporated, some money moved into gold and other safe-haven assets. The Indian rupee also weakened against the US dollar, adding to concerns for import-dependent sectors.
Foreign institutional investors were net sellers in early trade, while domestic institutional buyers stepped in to provide some support, analysts noted. Volatility, as measured by the India VIX, spiked sharply during the session.
Global Cues Turn Negative
The impact of the US strike was felt across Asian markets. Japan's Nikkei, Hong Kong's Hang Seng, and South Korea's Kospi all traded lower, mirroring the risk-off mood. US futures also pointed to a weak opening later in the day.
Crude oil prices edged higher on fears of supply disruptions from the region, a development that could further strain India's import bill and inflation outlook. Bond yields eased as investors sought fixed-income safety.
What to Watch Next
All eyes will be on official statements from the US and the affected region over the next 24 hours. Any signs of de-escalation could trigger a sharp rebound, but markets remain on edge. Traders advise caution until the geopolitical picture clears.