Sensex plunges 2,500 pts, Nifty drops 775 amid West Asia tensions

Indian equity markets plunged on Thursday as escalating geopolitical tensions in West Asia and a sharp spike in crude oil prices triggered one of the steepest sell-offs in nearly two years.

Benchmark indices BSE Sensex and Nifty 50 ended the session deep in the red, each falling over 3 per cent. The Nifty dropped 775.65 points to close at 23,002.15, while the Sensex tumbled 2,496.89 points to settle at 74,207.24.

The rout was driven by surging crude prices, as fears of supply disruptions intensified amid the ongoing conflict involving the United States, Israel and Iran. Brent crude spiked nearly 11 per cent to around $119.5 per barrel after reports that Saudi Arabia halted oil loading at the Yanbu port following damage to key refining infrastructure.

Drone strikes reportedly hit facilities operated by Saudi Aramco and the Samref refinery, with fires breaking out at multiple sites, fuelling concerns over prolonged supply shocks in global energy markets.

Investor anxiety was reflected in a sharp surge in the India VIX, which rose more than 22 per cent during the session before closing at similarly elevated levels — signalling heightened uncertainty and the likelihood of continued volatility in the near term.

The broader market mirrored the weakness in frontline indices, with midcap and smallcap stocks declining around 3 per cent each. Sectorally, the auto pack bore the brunt of the sell-off, as rising fuel costs threaten demand and margins. Financial services and IT stocks also came under heavy pressure, reacting to global risk-off sentiment.

Analysts said markets remain on edge, with investors closely tracking geopolitical developments and their potential impact on inflation, growth, and corporate earnings. The sharp rise in oil prices, they warned, could have cascading effects on India’s macroeconomic stability if tensions persist.

With IANS inputs