Investors lose Rs 6 lakh crore as Sensex plunges 1600 pts, Nifty cracks below 23,300

Domestic benchmark indices Sensex and Nifty snapped their three-session winning run on Thursday, weighed down by weak global cues and a sharp surge in crude oil prices, as escalating tensions in West Asia and attacks on Iran’s energy infrastructure dented market sentiment.

At 9:16 am, the BSE Sensex plunged 1636.03 points, or 2.13%, to 75,068.10. The NSE Nifty slumped 505.50 points, or 2.13%, to 23,272.30.

The domestic indices suffered a sharp fall, eroding around Rs 6.53 lakh crore in early trade. Investor wealth, as reflected in the BSE’s market cap, plunged to Rs 432.10 lakh crore, down from Rs 438.63 lakh crore recorded in the previous session.

Among Sensex constituents, HDFC Bank slipped 3.83% to Rs 810.70. Larsen & Tuobro (L&T) declined 3.36%, while Axis Bank, Adani Ports and Mahindra & Mahindra (M&M) fell 2.79%, 2.62% and 2.61%, respectively.

Israel's attack on Iran's largest LNG refinery has exacerbated the wartime uncertainty, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.

“Brent crude has shot up to $111. This is bad news for oil and gas importers like India. If Brent remains above $110 for an extended period of time, that will have negative implications for India’s macros,” Vijayakumar said.

Broader Asian markets traded lower. Japan’s Nikkei 225 plunged 2.47% to 53,875.94, while South Korea’s Kospi slipped 1.46% to 5,838.65, while Hong Kong’s Hang Seng fell 1.41% to 25,659.08. 

Wall Street closed lower overnight, with all three major indices ending in the red. The S&P 500 declined 1.36% to settle at 6,624.70, while the Dow Jones Industrial Average slipped 1.63% to close at 46,225.15. The Nasdaq Composite also fell 1.46% to end at 22,152.42.

Meanwhile, oil prices climbed today. At last check, Brent crude futures jumped 3.73% to $111.38 per barrel.

The market has been extremely volatile in response to war-related developments and crude oil prices, said Vijayakumar. “Last three days of recovery in the market is likely to be wiped out if the war escalation continues.”

In the previous session on Wednesday, the Sensex jumped 633.29 points, or 0.83 per cent, to close at 76,704.13, while the 50-pack index gained 196.65 points, or 0.83 per cent, to end at 23,777.80.

On the downside, Hariprasad K, SEBI-registered research analyst and founder of Livelong Wealth, believes 23,600 provides immediate support, followed by the 23,300-23,350 demand zone, while 23,000 remains a key psychological base for the overall trend.

“The BSE Sensex reflects a similar setup, with resistance placed around 76,800–77,000 and support at 76,400–76,500, followed by the stronger base near 76,000,” Hariprasad said.