Massive blood path at Stock Markets
Indian equity markets suffered a sharp rout on Thursday, erasing nearly Rs 12 lakh crore in investor wealth amid mounting global uncertainty and rising geopolitical tensions. Benchmark indices, the BSE Sensex and the Nifty 50, plunged about 3.3% each from the previous close, as a spike in crude oil prices and sustained foreign outflows dented investor confidence.
The 30-share Sensex tanked 2,496 points to settle at 74,207, while the Nifty 50 dropped 775 points to close at 23,002, managing to stay marginally above the key 23,000 psychological threshold. The fall wiped out gains accumulated over the past three sessions, signalling a sharp reversal in market momentum.
The downturn was largely triggered by a surge in global oil prices, with Brent crude crossing the $100 per barrel mark after Iran launched strikes on critical energy infrastructure in the Gulf. Elevated oil prices have heightened inflationary concerns and clouded growth prospects for oil-dependent economies like India.
Weak global cues further weighed on sentiment, while continued foreign institutional investor selling exacerbated the decline. The overall market capitalisation of firms listed on the Bombay Stock Exchange dropped sharply from Rs 439 lakh crore to Rs 427 lakh crore in just one trading session.
