Why markets are falling today: Oil shock and global sell-off hit Sensex, Nifty

Indian stock markets opened sharply lower on Thursday, with heavy selling across sectors, as fresh attacks on key energy facilities in West Asia rattled investor confidence and pushed global oil prices higher.

The sharp fall came as fears grew over possible disruptions to global energy supplies after strikes targeted major gas infrastructure in the region, raising concerns of a prolonged crisis. The uncertainty spilled over into global equities, dragging Indian benchmarks down at the start of trade.

Advertisement

The Sensex dropped 1,953 points, or 2.55 per cent, to open at 74,750, while the Nifty 50 fell 580 points, or 2.44 per cent, to 23,197. Although there was a slight attempt to stabilise in the early minutes, the broader sentiment remained weak.

Oil spike and global cues weigh on sentiment

The sell-off followed a sharp rise in crude oil prices. Brent crude climbed to around $112 a barrel, nearing record levels, as markets reacted to escalating tensions after Iran’s strike on Qatar’s Ras Laffan gas facility and earlier US-Israel strikes on Iran’s energy infrastructure.

Ajay Bagga, banking and market expert, told ANI that the situation had taken a “dangerous turn” after attacks on major gas facilities in Iran and Qatar. He also pointed to concerns flagged by US Federal Reserve Chair Jerome Powell, who repeatedly highlighted uncertainty and warned of inflation risks linked to energy shortages.

Global markets had already turned cautious overnight. US indices closed lower, with the Dow Jones down 1.63 per cent, S&P 500 falling 1.36 per cent, and Nasdaq slipping 1.46 per cent, setting a negative tone for Asian markets.

Across Asia, declines were visible in early trade. Japan’s Nikkei, Hong Kong’s Hang Seng, South Korea’s KOSPI and Taiwan’s index all traded lower, reflecting widespread risk aversion.

Financials, banks lead broad-based decline

Back home, the selling pressure was widespread, with financial and banking stocks taking the biggest hit. The Nifty Private Bank index fell over 3 per cent, while financial services, auto and metal stocks dropped more than 2 per cent each. FMCG, IT and media stocks also slipped, though losses there were relatively limited.

Among individual stocks, names like HDFC Bank, Axis Bank, Larsen & Toubro and IndiGo were among the early losers, falling up to 4 per cent in morning trade.

Market analysts said technical indicators suggest that Nifty may find immediate support in the 23,150–23,250 range, while resistance is seen closer to 23,900 levels. Momentum, however, remains fragile unless markets sustain a recovery above resistance.

The sharp decline also erased much of the gains seen earlier this week, when both Sensex and Nifty had rallied nearly 3 per cent.

In commodities, gold and silver prices edged lower, indicating mixed investor positioning even as global uncertainty rose.