The markets suffered a sharp reversal on Thursday, with the BSE Sensex tumbling over 1,600 points to an intraday low of 74,685 and the Nifty 50 falling below 23,300, touching 23,180. The decline ended a three-day rally as investors reacted to surging crude oil prices and cautious global cues.
Markets opened sharply lower after Brent crude crossed $110 per barrel, stoking concerns over higher import bills and inflationary pressures. Weak global cues, including a hawkish signal from the U.S. Federal Reserve, added to the risk-off sentiment.
Banking and financial stocks bore the brunt, with heavyweights such as HDFC Bank, ICICI Bank, Axis Bank, and L&T registering steep losses. Defensive and commodity-linked stocks saw limited buying, with ONGC and Coal India emerging as the few gainers amid rising energy prices.
Market volatility spiked, reflected in a jump in the India VIX, as traders reassessed near-term risks. Other sectors, including auto, metals, and IT, also declined, while healthcare and FMCG stocks posted comparatively smaller losses.
Analysts attributed the sell-off to profit-booking after recent gains, foreign institutional investor outflows, and heightened sensitivity to global crude prices.