Sensex Falls 363 Points as Crude Hits $95 on US-Iran Tensions

Indian equity markets ended deep in the red on Thursday as crude oil prices surged past $95 a barrel. The spike followed escalating military tensions between the United States and Iran, triggering a broad sell-off across sectors.

The BSE Sensex settled at 76,391, down 363 points from the previous close. The broader Nifty 50 index on the National Stock Exchange dropped 126 points to end at 23,869.

Crude Shock Hits Investor Sentiment

Oil prices have risen sharply over the past week. Brent crude breached the $95 mark on Thursday, a level not seen in recent months. The rally was driven by fears that the US-Iran standoff could disrupt supplies from the Strait of Hormuz, a key chokepoint for global oil shipments.

Higher crude prices are a worry for India, which imports over 80% of its oil needs. A sustained rise in oil prices can widen the trade deficit, stoke inflation, and pressure the rupee. These concerns weighed heavily on market sentiment.

Key Stocks and Sectoral Movers

Among individual stocks, Adani Enterprises, InterGlobe Aviation (IndiGo), and Bajaj Auto were among the top losers on the Nifty 50. Analysts said airlines and auto companies are particularly vulnerable to rising fuel costs.

Banking and financial stocks also faced selling pressure. The Nifty Bank index fell over 1% as investors worried about the impact of higher inflation on interest rate expectations.

Broader Market Trends

The sell-off was broad-based. Midcap and smallcap indices also declined, though they fared slightly better than the benchmarks. Market breadth was negative, with more than two stocks falling for every one that rose on the BSE.

Foreign portfolio investors (FPIs) were net sellers in the cash market, adding to the downward momentum. Domestic institutional investors provided some support but could not stem the decline.

Analysts said the market is now pricing in a prolonged period of elevated oil prices. If the geopolitical situation does not de-escalate, further downside cannot be ruled out. Investors are watching for any diplomatic moves or intervention by major oil producers.

All eyes will now be on whether OPEC+ responds to the price surge. Any signal of increased output could calm markets. For now, traders expect continued volatility until the US-Iran situation becomes clearer.