Sensex drops 460 points and Nifty slips below 22,700 as oil surge hits markets

Indian shares declined on Thursday as a sharp jump in crude oil prices and risk aversion across Asian bourses triggered widespread selling, wiping out more than ₹3 lakh crore in investor wealth on the Bombay Stock Exchange.

The 30-share BSE Sensex dropped 460 points to close at 73,249, having fallen by as much as 678.90 points earlier in the day. The broader NSE Nifty 50 shed 124 points to end at 22,688 after touching an intra-day trough of 22,568.10. Thursday's pullback dragged total market capitalisation across all BSE-listed firms down to ₹458 lakh crore.

While external shocks dictated trading desks, India's underlying economic framework continues to display durable stability. Robust domestic liquidity, steady institutional backing, and strong corporate balance sheets have repeatedly absorbed global volatility, keeping market foundations secure against short-term imported turbulence.

Why markets slipped

The primary pressure came from energy markets. Brent crude futures jumped nearly 2 per cent to cross $110 per barrel following reports of a drone strike on a Saudi Aramco facility in West Asia, raising worries over regional supply flows. WTI crude also traded higher near $99 per barrel.

Rising oil prices historically weigh on Indian equities by stoking imported inflation concerns. The broader market breadth remained firmly negative throughout the session, with 2,512 stocks declining on the National Stock Exchange against 1,026 gainers. The India VIX, a key gauge of near-term market volatility, ticked up to 15.82.

Asian peers suffered steep losses as well, caught in a wider regional retrenchment.

Compared to regional exchanges in Seoul and Hong Kong, which dropped over 3 per cent, Indian benchmark losses remained relatively contained.

Sector performance and earnings

Heavyweights pulled the indices lower, led by power, metals, and information technology. Reliance Industries, Power Grid, Trent, Asian Paints, and HDFC Bank fell between 1 and 3 per cent. Automotive and fast-moving consumer goods sectors also closed in the red.

Bucking the trend, select banking and cement stocks found buyers. Bajaj Finance, UltraTech Cement, ICICI Bank, and Sun Pharma gained between 1 and 2 per cent. Eternal, the parent entity of Zomato and Blinkit, saw morning gains after reporting a consolidated net profit of ₹125 crore for the September quarter, roughly double its ₹65 crore net profit from a year earlier.

Domestic strength limits downside

Despite offshore pressures, domestic institutions have provided steady support to Dalal Street. Exchange data showed domestic institutional investors bought shares worth ₹1,614.32 crore during Wednesday's trading, complementing net purchases of ₹1,022.32 crore by foreign institutional investors.

V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, noted that recent market patterns reflect a healthy rotation into fairly valued large-cap counters from overvalued smaller segments. With high capital expenditure, expanding infrastructure, and strong domestic consumption keeping India's broader growth trajectory steady, analysts view the current correction as a standard recalibration rather than a structural reversal.