Sensex, Nifty tumble at open as Middle East tensions send oil prices soaring

Indian equity markets fell sharply at the opening bell on Thursday, mirroring global weakness as escalating tensions in the Middle East drove a surge in oil prices.

The BSE Sensex dropped nearly 2,000 points, or about 2.5 per cent, in early trade, while the Nifty 50 slid more than 2 per cent before paring some losses.

The sell-off was broad-based, with financial and automobile stocks leading the decline. Shares of major lenders and corporates, including HDFC Bank, Axis Bank and Larsen & Toubro, were among the worst hit in early deals.

Sectoral indices reflected widespread pressure, particularly in banking and financial services. The private banking index fell more than 3 per cent, while auto and real estate stocks also recorded notable losses.

The sharp downturn follows a spike in crude oil prices amid fears of supply disruptions. Brent crude surged close to its all-time high, trading above $112 per barrel, while US benchmark WTI hovered around the $100 mark.

The rally in oil prices was triggered by intensifying geopolitical tensions after Iran launched a missile strike on Qatar’s Ras Laffan Industrial City, one of the world’s largest liquefied natural gas hubs.

The situation escalated further after joint US–Israeli airstrikes targeted Iran’s South Pars gas field and energy facilities in Asaluyeh, a critical hub for the country’s oil and gas production.

Analysts said the surge in crude prices has raised concerns over inflation and the potential impact on India’s import bill, weighing heavily on investor sentiment.

From a technical perspective, market participants are watching key support levels on the Nifty in the 23,250–23,150 range, with resistance seen near the 23,900 mark. Indicators suggest the market may be approaching oversold territory, though a sustained recovery would require stronger buying momentum.

The losses also erased much of the gains recorded earlier in the week, when both benchmark indices had rallied nearly 3 per cent.

Elsewhere in Asia, markets were also under pressure, with major indices in Japan, Hong Kong and South Korea declining by up to 3 per cent, reflecting a broader risk-off mood across global equities.

With IANS inputs