Indian equities kicked off Thursday with a resounding thud, as Middle East flare-ups sent shockwaves through global markets. The benchmark Sensex tanked 1,942.22 points—a hefty 2.55%—to hover at 74,750.92. Paralleling this, Nifty 50 tumbled 580 points or 2.4% to 23,197.75, painting a picture of widespread panic selling.
No sector was spared in this carnage. From realty and private banks to autos, financials, PSU banks, consumer goods, services, defense stocks, and metals— all indices bled profusely. Largecaps set the tone, but mid and smallcaps amplified the downturn: Nifty Midcap 100 slid 2.12% or 1,194.40 points to 55,095.45, while Nifty Smallcap 100 eased 1.52% or 246.50 points to 15,930.95.
Sensex constituents told a grim story, with 28 of 30 scrips underwater. Losers included blue-chips such as HDFC Bank, L&T, Axis Bank, M&M, Trent, Eternal, Asian Paints, Bajaj Finance, Maruti Suzuki, Kotak Mahindra Bank, UltraTech Cement, Bajaj Finserv, and IndiGo. NTPC and Power Grid stood alone as green outliers.
At the heart of the turmoil lies the escalating conflict in the Middle East. Wednesday’s US-Israel strikes on key Iranian energy assets in South Pars and Assaluyeh were met with Iran’s retaliatory missiles on Qatar’s Ras Laffan—the world’s largest gas facility. Oil prices surged dramatically, stoking inflation fears and supply chain jitters.
The contagion spread globally. Asian markets like Tokyo, Shanghai, Hong Kong, Bangkok, and Seoul mirrored the downside. Wall Street ended Wednesday weak, Dow down 1.63%, Nasdaq off 1.46%.
FIIs piled on the pressure, net selling Rs 2,714.35 crore in equities yesterday, while DIIs bought Rs 3,253.03 crore, offering a sliver of support.
Market watchers predict heightened volatility ahead. With crude volatility at peak levels and diplomatic channels strained, Indian investors face a precarious path. Strategic positioning in defensives and close monitoring of energy prices will be key to navigating this geopolitical minefield.