Equity benchmarks Sensex and Nifty opened sharply lower on Thursday, snapping a three-day gaining streak, as Brent crude oil prices surged well above $110 a barrel following Iran’s massive retaliatory strikes on key energy facilities in Qatar, the UAE, Bahrain, and Saudi Arabia.
The BSE Sensex plunged 1500 points, while the Nifty 50 declined 453 points in early trade.
The Nifty was trading around 23,300 points, and the Sensex was near the 75,000 mark, as broad-based selling gripped the market.
The majority of stocks were trading in the red, with banking heavyweight HDFC Bank leading the losses after its part-time chairman, Keki Mistry, announced his sudden departure from the company.
HDFC Bank shares fell more than 4.75 per cent on panic selling triggered by the announcement.
Mistry said, “I would not have assumed charge of part-time president at the age of 71 if it did not align with principles and integrity.”
He attempted to reassure investors, stating on behalf of the board, “I wish to assure all stakeholders that there are no material matters.” However, the statement failed to stem the panic selling.
The escalation in the Iran conflict, with fresh closures of gas facilities across the Gulf, has intensified global energy supply fears, contributing to the sharp sell-off in domestic equities.
Despite the volatility, the US Federal Reserve has maintained its interest rates unchanged, adding to market uncertainty over monetary policy amid rising crude prices.
The ongoing war and energy disruptions continue to keep investor sentiment cautious, with traders closely watching for any fresh developments from the Middle East.
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