Oil shock wipes Rs 12 lakh cr off markets

Indian equity investors lost around Rs 12 lakh crore on Thursday as markets witnessed a sharp crash, with the Sensex and Nifty plunging 3.3% from Wednesday’s close. The sell-off was triggered by surging crude prices amid escalating Middle East tensions and continued foreign fund outflows.
The 30-share Sensex dropped 2,496 points to settle at 74,207, while the Nifty fell 775 points to 23,002, hovering just above the 23,000 psychological mark. The fall wiped out Rs 12 lakh crore in market capitalisation on the BSE, declining from Rs 439 lakh crore to Rs 427 lakh crore.
All 30 Sensex stocks ended in the red, led by Eternal (5.65%), Bajaj Finance (5.42%), Mahindra & Mahindra (5.25%) and Larsen & Toubro (4.72%). HDFC Bank declined 5.13% following the resignation of its chairman Atanu Chakraborty citing ethical concerns. In the Nifty, ONGC was the lone gainer, while Shriram Finance fell the most at 6.71%.
Markets remained under pressure as Brent crude surged past $111 per barrel after Iran struck key energy infrastructure in the Gulf, raising fears of supply disruptions. Concerns deepened as the Strait of Hormuz remained shut, with Iran warning of further strikes.
Banking stocks also dragged indices lower, with Axis Bank, ICICI Bank, SBI and Kotak Bank posting losses.
Persistent foreign portfolio investor (FPI) outflows further weighed on sentiment, with Rs 77,214 crore withdrawn in 12 sessions this month. Analysts said high oil prices and geopolitical tensions could fuel inflation and impact earnings, while weak global cues and steady US interest rates added to the bearish outlook.