Benchmark equity indices Sensex and Nifty slumped in early trade on Thursday amid a sharp spike in crude oil prices, weak global cues, and continued foreign fund outflows. 

At 11 am, the 30-share BSE Sensex plunged 1136.58 points to 76,359.78 while the 50-share NSE Nifty fell 351.75 points to 23,825.90. 

Among the Sensex constituents, InterGlobe Aviation, Eternal, UltraTech Cement, Mahindra & Mahindra, Axis Bank, and Adani Ports were among the biggest laggards. On the other hand, Bajaj Finance, Bajaj Finserv, Tech Mahindra, Infosys, and Power Grid were among the gainers. 

Brent crude surges 4%

Brent crude, the global oil benchmark, surged 4.08% to $122.8 per barrel, adding pressure on investor sentiment. 

According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth ₹2,468.42 crore on Wednesday.

Asian markets down

In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225, and Hong Kong’s Hang Seng traded lower while China’s Shanghai SSE Composite was marginally higher. 

US markets ended mostly lower on Wednesday. 

Market experts said persistent geopolitical tensions, especially concerns around supply disruptions, have kept risk appetite subdued and made markets highly sensitive to developments. 

On Wednesday, the Sensex had rallied 609.45 points, or 0.79%, to settle at 77,496.36 while the Nifty gained 181.95 points, or 0.76%, to close at 24,177.65. 

Meanwhile, the Indian rupee depreciated by 32 paise to touch an all-time low of 95.20 against the US dollar in early trade on Thursday, pressured by rising crude oil prices and a stronger American currency. 

Forex traders said the USD/INR pair may weaken further, as elevated crude prices are likely to significantly increase India’s import bill while concerns over a wider conflict in West Asia continue to weigh on sentiment.