The SENSEX Index Closes 2.87% Lower

India's BSE Sensex plummeted about 3.3% on Thursday to close at 74,207, in its worst session since mid-2024, after three straight sessions of advances. The sharp selloff followed a severe escalation in the Middle East conflict, which caused a sharp jump in oil prices amid concerns over a prolonged energy crisis. Iran intensified its attacks on Gulf Arab energy infrastructure, striking a Saudi refinery on the Red Sea and setting Qatari LNG facilities and two Kuwaiti oil refineries ablaze in retaliation for an Israeli attack on its main natural gas field. Adding to the pressure, the US Federal Reserve kept interest rates unchanged, as expected, signaling they may remain at current levels for an extended period and prompting continued equity outflows. All sectors recorded losses, led by financials and banks. Autos, techs and travel and tourism stocks also saw heavy pressure. On equities, HDFC Bank dropped 5.1% after its chairman, Atanu Chakraborty, resigned, citing ethical concerns.

The SENSEX Index fell -2200 points or 2.87 percent on Thursday to close at 74504 points. Leading the losses are HDFC Bank (-5.11%), Eternal Limited (-5.09%) and Bajaj Finance (-4.93%).

India’s BSE Sensex fell about 2% down at 75,176 on Thursday, retreating from a one-week high after three consecutive sessions of gains, as oil prices surged above $110 per barrel amid escalating conflict in the Middle East. Investor sentiment remained cautious, with rising concerns over higher inflation and a weaker economic outlook. Adding to the pressure, the US Federal Reserve kept interest rates unchanged at 3.75%, signaling that interest rates may stay elevated, dampening expectations of near-term rate cuts and prompting continued outflows from equities. In addition, reports note that HDFC Bank’s chairman resigned over concerns related to values and ethics, leading to a drop of about 7% in its US-listed shares. All stock sectors traded in the red, led by financials and technology. Notable decliners included HDFC Bank (-4.2%), Larsen & Toubro (-3.4%), Axis Bank (-2.8%), Eternal (-2.8%), and ICICI Bank (-1.9%).