Sensex Crashes 2,497 Points in Market Bloodbath, 12 Lakh Crore Wiped Out in Dalal Street Rout
Indian stock markets crash as Sensex falls 2,497 points and ₹12 lakh crore investor wealth is wiped out amid rising crude prices and global tensions.
MUMBAI- Indian equity markets witnessed a sharp sell-off on Thursday, with benchmark indices recording one of their steepest single-day declines in recent years amid a confluence of global and domestic pressures.
The BSE Sensex fell 2,497 points, or 3.26%, to close at 74,207.24, while the Nifty 50 declined 776 points, or 3.26%, to settle at 23,002.15. The fall marked the worst performance since June 2024 and erased gains made over the previous three sessions.
The sharp decline led to a significant erosion of investor wealth, with total market capitalisation on the Bombay Stock Exchange falling by over ₹12 lakh crore. Estimates suggest that the market cap dropped from approximately ₹439 lakh crore to around ₹427 lakh crore during the session.
Intraday volatility remained high, with the Sensex touching a low of 73,950.95 and the Nifty slipping to 22,930.35 before recovering slightly towards the close.
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Market participants attributed the sell-off to a combination of geopolitical escalation, rising crude oil prices, and domestic financial sector developments. Tensions in the Middle East intensified amid the ongoing US-Israel-Iran conflict, with reported disruptions to energy infrastructure and shipping routes near the Strait of Hormuz, a critical global energy corridor.
The surge in crude oil prices, with Brent briefly crossing $119 per barrel, heightened concerns over inflationary pressures in India, which remains heavily dependent on energy imports. Analysts noted that higher oil prices could widen the current account deficit and compress corporate margins, particularly in sectors such as automobiles, financial services and real estate.
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Domestic factors also contributed to the decline. Shares of HDFC Bank came under pressure following the abrupt resignation of its chairman, reportedly citing ethical concerns. Given the bank’s significant weightage in benchmark indices, the development had a disproportionate impact on market sentiment.
Global macroeconomic signals further dampened investor confidence. The US Federal Reserve maintained a cautious stance on interest rates, indicating no immediate easing, while foreign institutional investors continued to withdraw funds from emerging markets. The Indian rupee also weakened, approaching the 93 per US dollar mark, adding to concerns over capital outflows.
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Sectorally, all major indices ended in negative territory. Midcap and smallcap indices declined by around 3% each, indicating broad-based selling across the market. The India VIX, a measure of market volatility, surged above 21, reflecting heightened uncertainty among investors.
The market downturn comes against the backdrop of sustained volatility since late February, when geopolitical tensions began escalating. Thursday’s losses reversed recent gains and pushed benchmark indices to multi-month lows.
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Analysts suggest that markets may remain volatile in the near term, with movements likely to be influenced by developments in global energy markets, geopolitical conditions and central bank signals. While some technical indicators point to potential support levels around the Nifty’s 22,800–23,000 range, the outlook remains uncertain.
Investors have been advised to exercise caution, maintain diversified portfolios and closely monitor global cues as markets navigate a period of heightened risk.
