Sensex Plunges Over 1,000 Points as Crude Oil Surges Past $104
Indian equity markets came under intense selling pressure on Thursday as the BSE Sensex plunged more than 1,000 points amid a sharp surge in global crude oil prices that crossed the $104-a-barrel mark, heightening concerns over inflation, the rupee and corporate margins.
In early-to-mid session trade, the 30-share Sensex tumbled over 1,000 points from previous levels, while the NSE Nifty 50 slipped below key support zones near 22,300–22,400. Investor wealth worth several lakh crore rupees was wiped out in the broad-based sell-off, extending a prolonged losing streak for Indian benchmarks that has already erased substantial market capitalisation in recent weeks.
The primary trigger was the jump in Brent crude futures, which climbed above $104 per barrel (reports put it near $104.19 at one point), driven by persistent geopolitical tensions in West Asia, supply-disruption fears around the Strait of Hormuz, and attacks on shipping. Higher oil prices raise India’s import bill, add to inflationary pressures, and keep the rupee under strain, factors that have repeatedly rattled Dalal Street.
Foreign portfolio investors continued to sell, while rising US Treasury yields and the Reserve Bank of India’s recent hawkish stance including a rate hike further weighed on sentiment. Most sectoral indices traded in the red, though select IT stocks offered limited support ahead of earnings.
Market participants said elevated crude remains the key overhang. With oil holding firmly above $100 and geopolitical risks unresolved, analysts expect volatility to persist until there is clearer progress on Middle East tensions or a meaningful cooling in energy prices.
The session underscored the tight inverse correlation between Indian equities and global oil benchmarks in the current environment, as risk-off flows dominate.
