India’s benchmark equity indices fell sharply minutes after the opening bell on Thursday, as a spike in crude oil prices, a sell-off across Asia and a jump in volatility weighed on sentiment.
The NSE Nifty 50 fell as much as 1.11% to an intraday low of 22,557.95, against Wednesday’s close of 22,811.35. The BSE Sensex fell as much as 0.96% to 73,005.11. As of 9:30 a.m., the Nifty was trading 182.80 points or 0.80% lower at 22,628.55, while the Sensex was down 581.05 points or 0.79% at 73,128.63.
The selling was sharper in the broader markets. The Nifty Smallcap 100 was down 313.50 points or 1.7% at 18,173.80, while the Nifty Midcap 100 fell 897.75 points or 1.56% to 56,668.10 as of 9:34 a.m.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Here are three reasons why the market is down today:
1. Crude Oil Tops $110 After Attacks In Saudi Arabia
Brent crude rose $1.29 to $110.11 a barrel on Thursday after fresh attacks by Yemen’s Houthi group on Saudi targets, including a civilian airport and an oilfield, prompted the US to order some diplomats and their families to leave its missions in the kingdom. A drone strike on Saudi Aramco’s Shaybah field killed two people, though operations were unaffected. Adding to the unease, reports pointed to US and Israeli preparations for renewed strikes on Iran.
Brent has surged about 80% this year after flows from the Persian Gulf were disrupted by the US-Iran war, now approaching its ninth month. For India, which imports the bulk of its crude, higher oil prices threaten a wider import bill and stickier inflation.
2. Asian Markets Tumble On AI Jitters
Dalal Street ignored gains on Wall Street, where the Dow Jones rose 0.69%, the S&P 500 0.58% and the Nasdaq 1.05% overnight, and instead tracked a sharp sell-off across Asia.
South Korea’s Kospi was the worst hit, down 3.1% at 5,557.67, while Hong Kong’s Hang Seng slumped nearly 3% to 22,945. Japan’s Nikkei 225 fell 2.05% to 63,294, China’s Shanghai Composite slipped 0.89% and Australia’s S&P/ASX 200 was down 0.42%. US stock futures also turned lower, with S&P 500 futures down about 0.6%.
Mixed earnings from major US technology companies failed to reassure investors about returns on massive AI spending, renewing pressure on chip stocks. SK Hynix fell 4% and Samsung Electronics 3.6%, while Japan’s Kioxia dropped 3.3%.
3. Broad-Based Selling, Volatility Spikes
The sell-off was across the board. All major sectoral indices were in the red in early trade, with Nifty Metal down nearly 2%, Nifty Auto down 1.88%, and Nifty FMCG and Nifty Pharma down 1.4% each. Only five Sensex stocks were in the green, with Power Grid the worst performer, down 2.5%. Power Grid, Mahindra & Mahindra and Nestle India were among the top Nifty losers.
Fear also crept back. The India VIX, which measures expected market volatility, jumped nearly 6% to 16.61. Market breadth was heavily negative, as on the BSE 500, only 46 stocks advanced against 451 declines. The Nifty Next 50 was down about 1.5%.
The fall extends Wednesday’s losses, when the Nifty fell after touching an intraday high of 23,120, shedding over 450 points from the day’s peak before recovering to close near 22,800.
ALSO READ:Â Brent Crude Surges 1% To Cross $110 Per Barrel As Deadly Strike Near Aramco Stoke Supply Fears
Essential Business Intelligence,
Sharp Market Insights,
Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
