Stock Market Cras͏h: Sensex Fa͏lls 8͏29 Points, Nifty Sl͏ips 0.͏95%͏ A͏s Crude Oil Surges Above $100

Mumb͏ai, March 12: Indian e͏qui͏ty bench͏mar͏ks ͏closed sharply lower on T͏hursday as rising ͏c͏rude oil prices and͏ e͏scalati͏ng geopolitical tensions͏ ͏weighe͏d on market͏ sentiment.͏ The͏ BSE Sensex ͏ended 829.29 points͏ ͏or 1.08% lower at 7͏6,034.42͏, ͏whi͏le ͏the NSE͏ Nifty 50 declined 227.7͏0 ͏poi͏nt͏s or 0.95% to close at 23,6͏39͏.15, m͏ark͏in͏g͏ the se͏co͏nd͏ consecuti͏ve session of losses for domest͏ic eq͏u͏it͏ies.

Both͏ ͏indices r͏ecovered s͏om͏e mo͏rn͏ing ͏losse͏s d͏uring t͏he session but͏ fai͏led to sustai͏n gains ͏amid͏ renew͏ed sell͏ing pre͏ssure before the closing͏ be͏ll͏. ͏The weakness f͏o͏llowed a broader global s͏ell-off tr͏iggered͏ by a surge in oil͏ p͏rices͏ and heig͏h͏tened tensions in the Mid͏dle͏ East͏, which inten͏si͏fied concerns aroun͏d inflation ͏an͏d global͏ econom͏ic͏ stability.

Sensex Drops 829 ͏Points,͏ ͏Nif͏ty Ends ͏Below 23͏,700

I͏ndian stock ma͏rkets remai͏ned u͏nd͏e͏r pressure through͏out ͏the t͏rading s͏ession͏ ͏as heavy selling͏ i͏n bank͏ing͏ and auto͏mobile stocks dragged the b͏enchmar͏ks lowe͏r. The͏ Sensex dropped as much as 992.53 points or 1.3%͏ during intraday ͏trade t͏o ͏touch 75,871.͏1͏8, while the Nifty 5͏0 slip͏ped ͏298.15 po͏in͏ts ͏o͏r 1.25% to an in͏trad͏a͏y low ͏of ͏23,5͏56.30.

Despite partial recovery during midday trade, both indices closed near the lower end of the day’s range. The Nifty finished below the 23,700 mark, while the Sensex ended at 76,034.42, reflecting sustained pressure across several large-cap stocks.

The market decline followed a 1.7% fall in benchmark indices in the previous session, extending the ongoing correction in domestic equities.

Oil Above $100 Sparks Global Market Declines

The sharp fall in equities coincided with a significant rise in global crude oil prices. Brent crude futures surged above $100 per barrel, briefly touching $101.59, after reports that Iranian explosive-laden boats struck two fuel oil tankers near Iraqi waters. The incident intensified concerns about supply disruptions in the Middle East.

Officials also reported that some oil ports had “completely stopped operations”, raising fears about global energy supply. The situation further escalated as Iran warned that oil prices could potentially reach $200 per barrel, while commercial vessel traffic through the Strait of Hormuz slowed significantly.

Even after the International Energy Agency (IEA) announced the release of a record 400 million barrels of oil from strategic reserves, volatility in oil markets remained elevated.

The spike in crude prices raised concerns about higher inflation, particularly for oil-importing countries such as India, which relies heavily on imported energy supplies.

Auto, FMCG and Banks Lead Market Losses

Sectoral performance showed broad-based weakness, with automobile stocks witnessing the sharpest decline. The Nifty Auto index fell more than 3% during the session, extending losses to over 6% in the past two trading sessions.

The Nifty FMCG index declined about 1.7%, while the Nifty Private Bank index dropped roughly 1.6%, reflecting pressure across consumption and financial stocks.

Among the biggest losers on the Nifty were Eicher Motors, Mahindra & Mahindra, Maruti Suzuki, Bajaj Finance and UltraTech Cement. Banking stocks also contributed to the downturn, with the Nifty Bank index falling 634.80 points to close at 55,100.95.

In contrast, select sectors showed resilience. The Power index gained about 2.5%, while the Energy index rose around 2%. Stocks such as Coal India, Jio Financial Services, Adani Enterprises, NTPC and Power Grid Corporation emerged among the notable gainers.

Contract Wins Lift Select Stocks While Over 360 Shares Hit 52-Week Lows

Despite the broader market decline, several stocks recorded gains driven by order wins and corporate developments. Omnitech Engineering shares rose 5.6% after securing a ₹920 crore five-year contract, while VA Tech Wabag gained 1.5% following an order from the Chennai Metropolitan Water Supply & Sewerage Board. KEC International advanced 2.7% on new orders worth ₹1,476 crore, and Vascon Engineers added 1.7% after receiving a ₹115.9 crore work order.

Enviro Infra Engineers climbed 5% on a ₹411 crore project win, Aarti Industries rose 3.5% after securing a $150 million contract, and Jagsonpal Pharmaceuticals gained 6% after approving a share buyback. In contrast, Borosil declined 6.5% after LPG supply curbs affected production.

Meanwhile, over 360 stocks touched their 52-week lows, including Hexaware Technologies, Jubilant Foodworks, Varun Beverages, KPIT Technologies, Swiggy, Colgate-Palmolive and IRCTC, reflecting the broader weakness across the market.

Market Capitalisation Falls By ₹14 Lakh Crore

The market downturn significantly reduced the total valuation of listed companies. The overall market capitalisation of firms listed on the BSE dropped to around ₹436 lakh crore, compared with nearly ₹450 lakh crore earlier, translating into a decline of roughly ₹14 lakh crore in investor wealth.

Broader markets showed relatively better resilience compared with the benchmark indices but still ended in negative territory. The Nifty Midcap index declined about 0.4%, while the Nifty Smallcap index fell around 0.7% during the session.

Market breadth also reflected weakness, with a larger number of stocks closing in the red across the National Stock Exchange.

Rupee Hits Record Low of 92.36 Against Dollar

The volatility in global markets and rising crude prices also impacted the currency market. The Indian rupee weakened for the second consecutive session and touched a record low of 92.36 against the US dollar during intraday trade.

The currency eventually settled at 92.19 per dollar, marking a decline of 16 paise from the previous close. The stronger US dollar and elevated oil prices contributed to the pressure on the domestic currency.

A weaker rupee can raise the cost of imports, particularly crude oil, which remains a critical component of India’s energy requirements.

Gold and Silver Rise Amid Geopolitical Uncertainty

Precious metals gained during the session as geopolitical tensions supported safe-haven demand. Silver prices surged ₹8,500 or 3.2% from the day’s low to touch ₹2,74,665 per kilogram, marking a 2.3% increase from the previous close.

Gold prices also rebounded, climbing ₹1,915 or 1.2% from the day’s low to reach ₹1,62,991 per kilogram, representing a 0.7% rise compared with the previous session’s close.

Earlier in the day, however, prices had briefly declined, with MCX silver trading 0.86% lower at ₹2,66,174 per kilogram and MCX gold down 0.4% at ₹1,61,081 per 10 grams, before recovering later in the session.

Thursday’s decline in Indian equities highlights the sensitivity of domestic markets to global developments, particularly movements in crude oil prices and geopolitical tensions affecting energy supply. The session also underscores how currency fluctuations, sector-specific declines, and global market trends can simultaneously influence benchmark indices, broader market performance and commodity prices across the financial ecosystem.