Indian stock markets came under heavy selling pressure on Thursday, with the Sensex plunging more than 1,000 points and the Nifty falling sharply as investors reacted to rising crude oil prices, weak global cues and the Reserve Bank of India’s more hawkish policy stance.
The Sensex, which opened about 150 points lower, extended its losses as the session progressed. By around 2:10 pm, it had fallen 1,151 points, or 1.59%, to 71,477. The Nifty50 was down 395 points, or 1.75%, at 22,209.
The sharp fall wiped out a significant amount of investors’ wealth. The combined market capitalisation of BSE-listed companies declined by around ₹10 lakh crore, falling from nearly ₹4.71 lakh crore crore at Wednesday’s close to around ₹4.61 lakh crore crore during Thursday’s session.
One of the major concerns for investors was the sharp rise in crude oil prices. Brent crude climbed nearly 3.9% to touch $104.09 a barrel as concerns over supply disruptions in the Middle East continued. For India, which relies heavily on imported crude, sustained high oil prices can increase import costs and put pressure on inflation and the rupee.
Market sentiment was also affected by the RBI’s policy decision on Wednesday. The central bank raised the repo rate by 25 basis points to 5.50% and shifted its policy stance from “neutral” to “calibrated tightening”. The move raised concerns that borrowing costs could remain higher for longer.
Global markets also provided little support. US stocks ended lower on Wednesday, while elevated US Treasury yields and a stronger dollar added to pressure on emerging-market assets.
The rupee also remained under pressure, opening around ₹96.68 against the US dollar after closing near ₹96.78 on Wednesday. Analysts said higher crude prices, a strong dollar and elevated US yields could continue to weigh on the currency.
The market decline was broad-based, with rate-sensitive sectors particularly vulnerable after the RBI’s policy shift. Investors are now watching crude prices, currency movements, global market trends and the RBI’s future policy signals closely.
The sharp correction highlights the fragile mood in equity markets, where concerns over inflation, interest rates and geopolitical risks are combining to increase volatility.
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