Sensex Drops Over 500 Points, Nifty Slips Below 24,650 as Oil Spike and West Asia Tensions Jolt Markets

Indian equity markets opened sharply lower on Thursday as rising geopolitical tensions in West Asia and a spike in crude oil prices unsettled investor sentiment. The BSE Sensex fell more than 500 points in early trade, while the NSE Nifty 50 slipped below the 24,650 level as selling pressure spread across sectors.

The decline followed reports of escalating tensions involving Israel and Iran, developments that pushed global crude prices higher and triggered caution across international financial markets. Higher oil prices are often viewed as a risk for India’s economy because the country imports a large share of its crude requirements.

Banking and financial stocks led the fall in early trade, dragging the broader indices lower. Market participants also tracked weakness in global markets overnight, which added to the cautious mood on Dalal Street at the start of the session.

The rupee edged lower against the US dollar in early trading, reflecting the broader risk-off sentiment among investors. Analysts said that rising crude prices and geopolitical uncertainty could keep markets volatile in the near term, particularly for sectors sensitive to input costs and global demand.

Despite the sharp opening losses, traders indicated that markets may continue to see stock specific activity as investors react to corporate developments and global cues through the session.