 "Indian stock traders react on seeing the 30 share benchmark index Sensex. (File/AFP)")
Indian equity benchmarks plunged sharply in early trade on Thursday, tracking global weakness and rising geopolitical tensions after Donald Trump escalated rhetoric around the ongoing Iran conflict, dampening investor sentiment.
The BSE Sensex slumped 1,454.33 points, or 1.99 per cent, to 71,679.99 as of 9:16 am, after opening lower at 72,262.05. The index hit an intraday low of 71,613.52, reflecting broad-based selling across sectors.
The Nifty 50 mirrored the fall, declining 446 points, or 1.97 per cent, to 22,233.40, with all 50 constituents trading in the red—signalling a decisive risk-off mood in the market.
Global jitters spill over
The sell-off comes after heightened uncertainty around the Iran war, with Trump warning of intensified military action while offering no clear timeline for de-escalation. The comments pushed crude oil prices higher and weighed on global equities, particularly in Asia.
Investor anxiety was further amplified by a surge in Brent crude prices to around $105 per barrel, raising concerns about inflation and India’s import bill.
Broad-based losses
Selling pressure was widespread across heavyweights and sectoral leaders. Banking and financial stocks led the decline, with shares of major lenders falling between 1.7 per cent and nearly 3 per cent.
Index heavyweights in IT and energy also slipped, with frontline stocks posting modest to sharp losses. Meanwhile, capital goods, metals, and auto stocks saw deeper cuts, reflecting concerns over global growth and input costs.
Among the worst-hit stocks were aviation, pharmaceuticals, and infrastructure names, with declines extending up to nearly 5 per cent in early trade.
No safe haven in equities
Market breadth remained decisively negative, with all Nifty 50 stocks trading lower and no gainers recorded at the time of writing. The absence of defensive buying signals a broader retreat by investors amid rising uncertainty.
Institutional flows in focus
The sharp fall also follows heavy selling by foreign portfolio investors (FPIs), who offloaded equities worth ₹83.31 billion in the previous session. Domestic institutional investors (DIIs), however, provided partial support with net purchases of ₹71.72 billion.