Indian benchmark indices extended the losses in the closing session as the selling pressure on the index heavyweights intensified. The NIFTY50 fell nearly 775 points to settle near 23,000 levels, and SENSEX plunged 2,496 points to close at 74,207.
The benchmark indices erased all the major gains of the last three trading sessions to close near 52-week low levels. The markets witnessed one of the worst intraday sell-offs since the COVID-19 crash in March 2020.
The decline was fueled by weak global cues, including a sharp spike in crude oil prices, which rose above $115 per barrel in the afternoon session as Iran attacked its neighbouring country’s energy infrastructure. Besides, heavy losses in Banking and Auto stocks sparked caution among market participants.
Among the 50 constituents of the NIFTY50, 49 closed in red with Shriram Finance (-6.7%), Eternal (-5.3%), HDFC Bank (-5.1%), Bajaj Finance (-4.9%) and M&M (-4.8%) as the top five losers. While ONGC closed as the sole gainer with 1.5% gains for the day.
The top losers on the SENSEX were Eternal down by 5.46%, Bajaj Finance down by 5.4%, HDFC Bank down by 5.13%, M&M down by 4.86%, Larsen & Toubro down by 4.73% and Bajaj Finserv down by 4.4%. All the stocks in the SENSEX closed in red on Thursday.
On the stock-specific front, shares of HDFC Bank closed over 5% lower after part-time chairman Atanu Chakraborty resigned overnight and Keki Mistry replaced him for the next three months, effective today. The shares opened over 9% lower at ₹770 apiece, but later recouped partial losses to trade above ₹820 per share on Thursday.
The gas stocks like Adani Total Gas and ONGC bucked the broader trend by jumping upto 12%, as compared to yesterday’s close. The shares received buyers’ interest after Iran’s largest gas treatment plant came under attack by Israel and the US, sparking supply concerns.
On the global market front, the European markets traded in red after Iran’s attack on the neighbouring country’s infrastructure rattled investor sentiment. Germany’s DAX lost 505.55 points or 2.15% to 22,996.70, the UK’s FTSE 100 decreased 191.7 points or 1.86% to 10,113.59 and France’s CAC fell 129.38 points or 1.62% to 7,840.50.