The benchmark equity indices opened sharply lower on Thursday, with the BSE Sensex dropping over 1,250 points, and the Nifty50 slipping below the 25,500 mark. The fall was in line with losses across other Asian markets as investors reduced their risk appetite due to the escalating Middle East conflict.
Sensex Today
Key Market Movements:
- Sensex: Down 1,264 points (1.5%), trading at 83,002.
- Nifty50: Down 344 points (1.33%), trading at 25,452.
- Market Capitalization: The market cap of all listed companies on BSE declined by ₹5.63 lakh crore, now at ₹469.23 lakh crore.
- Key Stocks Dragging the Market: Reliance Industries, HDFC Bank, ICICI Bank, M&M, L&T, Bharti Airtel.
- Top Gainers: JSW Steel, Tata Steel.
- Nifty Oil & Gas Index: Dropped over 1.2%, with Hindustan Petroleum, IOC, and GSPL being the top laggards.
- India VIX (Fear Gauge): Jumped 8.9%, reaching 13.06.
Major Factors Behind the Market Meltdown:
- Iran-Israel Conflict: Rising tensions between Iran and Israel have fueled concerns. Iran launched ballistic missiles at Israel earlier this week, intensifying fears of a broader regional conflict and oil supply disruptions.
- Rise in Crude Oil Prices: Oil prices surged, with Brent crude surpassing $75 per barrel. The increasing prices are particularly harmful to oil-importing nations like India, as crude contributes significantly to the country’s import bill.
- SEBI’s Tightened F&O Measures: The Securities and Exchange Board of India’s (SEBI) decision to introduce stricter rules in the futures and options (F&O) segment has added to market concerns, especially among retail investors. This includes changes like limiting weekly expiries and increasing contract sizes.
- China Factor: The resurgence of Chinese stocks has raised worries for Indian investors. Chinese stock indices have surged following the government’s economic stimulus measures, potentially prompting a shift of foreign institutional investments away from India.