19 March,2026 05:58 PM IST | Mumbai | mid-day online correspondent
Representational image. File pic
After three days of recovery amid the West Asia conflict, Indian benchmark equity indices plunged over 3 per cent on Thursday. Snapping a three-day rally, weighed down by a sharp rise in crude oil prices and weak global cues.
One of the reasons for the sudden fall in the indices was that the US Federal Reserve kept its benchmark rate unchanged while signalling higher inflation, leaving limited room for rate cuts this year.
At close, the Sensex declined 2,496.89 points, or 3.26 per cent, to settle at 74,207.24, while the Nifty fell 775.65 points, or 3.26 per cent, to 23,002.15. All major Nifty sectoral indices ended in the red, led by financial and banking stocks, which dropped around 3 per cent each amid heavy selling in HDFC Bank.
Apart from equity indices, Brent crude has also surged to around USD 114, posing a negative for oil-importing countries like India. Experts also highlighted that a higher crude price could adversely impact the country's macroeconomic outlook.
The index formed a large bearish candle, marked by a lower high and a lower low, along with shadows on both sides, indicating a likely continuation of the corrective trend after the brief three-session pullback.
Notably, it erased the entire gains of the past three sessions in just one day. From a technical standpoint, the index continues to exhibit a bearish bias in both the short and medium term, as it maintains a pattern of lower highs and lower lows.
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, while expressing his views on the market movements, asserted, "Indian equities witnessed a bloodbath, snapping a three-day positive streak, as escalating tensions in West Asia triggered a global risk-off sentiment. The conflict has increasingly taken the shape of energy warfare, with attacks on critical infrastructure by both sides driving a sharp spike in crude oil prices and rattling investor confidence."
Khemka further added, "The fall was further exacerbated by persistent foreign outflows, with FIIs selling Rs 73,705 crore over the past 12 sessions, adding to the pressure alongside weak global cues."
HDFC Bank came under sharp pressure following the abrupt resignation of its Chairman, with the stock declining over 5 per cent. Given that it is the largest bank in India and the second-largest company by market capitalisation, the move significantly weighed on benchmark indices."
