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Sensex Crashes 829 Points, Nifty Below 23,650 as Oil Volatility Hits

Indian benchmark indices, Sensex and Nifty, ended sharply lower due to volatility in global oil prices and related geopolitical concerns. The auto sector was the worst hit, while the oil and gas sector gained. Broader markets also declined, with midcap and smallcap indices closing in the red. The rupee found some stability after hitting a historic low, supported by central bank intervention.

Key Points: Sensex, Nifty Fall Sharply on Oil Price Volatility

  • Nifty fell 0.95%
  • Sensex dropped over 800 points
  • Auto sector worst performer
  • Oil & Gas sector gained
  • Rupee stabilised after historic low
2 min read

Sensex, Nifty end sharply lower as oil price volatility weighs on markets

Indian stock markets fell sharply as oil price swings and geopolitical concerns triggered broad-based selling. Auto stocks were among the biggest losers.

"23,500 and 23,000 remain key demand zones, supported by strong put open interest. - Market Expert"

Mumbai, March 12

Indian benchmark equity indices ended lower on Thursday as volatility in global oil prices dampened investor sentiment and triggered selling across sectors.

The Nifty declined 0.95 percent, or 227.70 points, to close at 23,639.15. Meanwhile, the Sensex fell 1.08 percent, or 829.29 points, to settle at 76,034.42.

Commenting on Nifty technical outlook, experts said that on the downside, 23,500 and 23,000 remain key demand zones, supported by strong put open interest that could offer near-term support.

"On the upside, 23,700 stands as the immediate resistance followed by 23,800, while 24,000 continues to remain a strong supply zone for the index," an analyst stated.

Among the stocks on the Nifty50 index, automakers saw significant losses during the session.

Mahindra & Mahindra, Eicher Motors, and Maruti Suzuki India emerged as the top losers.

Market sentiment was also influenced by developments in West Asia and concerns over energy supplies.

According to reports, India's External Affairs Minister S. Jaishankar held discussions with his Iranian counterpart on issues related to maritime safety and India's energy security.

External Affairs Ministry spokesperson Randhir Jaiswal said the talks focused on ensuring safe shipping routes.

Iran has reportedly assured that Indian-flagged ships will be allowed to pass safely through the Strait of Hormuz, an important global oil shipping route.

Broader markets also ended lower in line with the benchmark indices. The Nifty Midcap 100 index fell 0.37 percent, while the Nifty Smallcap 100 index declined 0.69 percent during the session.

Sector-wise, the Nifty Auto index was the worst-performing sectoral gauge. The decline came amid concerns over restrictions on gas supplies and a broader shortage that could weaken the outlook for the automotive sector. The Nifty FMCG and Nifty Realty indices also underperformed.

On the other hand, the Nifty Oil & Gas index emerged as the top-performing sector in Thursday's trading session, supported by the rise in global crude oil prices.

Analysts said that volatility in oil markets and concerns over global energy supply continued to weigh on investor sentiment, leading to broad-based declines in Indian equities.

Meanwhile, after stumbling to a historic low, the Rupee recouped some ground, anchored by central bank supports and a pullback in oil benchmarks. Though the rupee stabilised, the overarching momentum stays skewed to the downside.

"The spot USDINR has resistance near 92.50, with downside protection hovering at 91.60," an expert stated.

- IANS

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Reader Comments

P
Priya S
Auto stocks getting hammered is worrying. So many families depend on that sector for jobs. If gas supply issues continue, it will hit manufacturing and sales badly. Hope the government has a plan to cushion this impact beyond just diplomatic talks.
A
Aman W
Time to average down! 23,500 is a strong support for Nifty as per the article. These dips are buying opportunities for long-term investors. The fundamentals of the Indian economy are still solid. Don't panic and sell.
S
Sarah B
Living in India for 5 years now, and the market's sensitivity to oil is so clear. It affects everything from fuel prices to inflation. Glad to see the External Affairs Minister is actively engaging on maritime safety. That's crucial for stability.
K
Karthik V
The real pain is in mid and small caps also falling. That's where retail investors like us have most exposure. While the headline indices fall 1%, our smaller holdings can fall 3-4%. Need to be very selective now. Oil & Gas shining while others fall tells the whole story.
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Nikhil C
Respectfully, the constant focus on daily movements and technical levels by the media adds to the noise and short-term thinking. We need more analysis on long-term policy to reduce this oil dependency. Green energy push can't come soon enough.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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