Stock market today: Sensex tanks 992 pts, Nifty below 23,600; IndiGo, Eternal lead losers

Domestic benchmark indices Sensex and Nifty extended their losses to open lower on Thursday, tracking weak cues from global markets amid rising crude oil prices stoking inflation risks. Investors stayed cautious due to the ongoing West Asia conflict and continued strain on global oil supplies.

At 9:19 am, the BSE Sensex tanked 943.84 points, or 1.23%, to 75,919.87, after falling as much as 992 points. The NSE Nifty tumbled 295 points, or 1.24%, to 23,571.85, briefly touching a low of 23,556.30.

On the downside, Ponmudi R, CEO of Enrich Money, said that immediate support is around 23,700, and a decisive break below this level could pave the way for a deeper correction towards the 23,400 level.

Among Sensex constituents, InterGlobe Aviation (IndiGo) declined 3.48% to Rs 4200.30. Eternal slipped 2.75%, while ICICI Bank, Mahindra & Mahindra (M&M) and Larsen & Tuobro (L&T) fell 2.56%, 2.16% and 2.08%, respectively.

“On the upside, 24,000 now acts as the first layer of resistance, while a stronger hurdle is placed near the 24,300 region. A sustained move above 24,300 would be required to signal a meaningful recovery in the near term,” Ponmudi added.

Broader Asian markets traded lower. Japan’s Nikkei 225 declined 1.54% to 54,177.15, while South Korea’s Kospi was down 1.09% to 5,548.69, and Hong Kong’s Hang Seng slipped 1.32% to 25,557.54. 

To calm markets, the International Energy Agency (IEA) announced that member countries would release approximately 400 million barrels of crude from strategic reserves, marking one of the largest coordinated emergency releases in history, said Hariprasad K, SEBI-registered research analyst and founder at Livelong Wealth.

Wall Street ended the overnight session mostly lower, with two of the three major indices closed in the red zone. The S&P 500 edged 0.08% lower to settle at 6,775.80, while the Dow Jones Industrial Average declined 0.61% to close at 47,417.27. The Nasdaq Composite edged higher 0.08% to end at 22,716.14.

“The key concern lies in the Strait of Hormuz, one of the world’s most critical oil transit chokepoints, through which a substantial share of global crude and refined products such as jet fuel passes,” Hariprasad said.

Meanwhile, oil prices jumped today. At last check, US crude prices surged 9% to $95.10 per barrel, while Brent crude futures climbed 9.36% to $100.59 per barrel.

In the last session on Wednesday, the Sensex plunged 1342.27 points, or 1.72%, to close at 76,863.71, while the Nifty declined 394.75 points, or 1.63%, to settle at 23,866.85.