Markets Tumble as BSE Sensex and Nifty 50 Post Sharpest Fall in Over Two Weeks

Mumbai: Indian benchmark indices came under intense selling pressure on Thursday, logging their steepest single-day decline in more than two weeks amid escalating geopolitical tensions and a surge in crude oil prices.

The Sensex plunged 1,236.11 points, or 1.48 per cent, to close at 82,498.14. The Nifty 50 dropped 365 points, or 1.41 per cent, to settle at 25,454.35. This marked the worst one-day fall for both indices since February 1.

### Technical Breakdown Accelerates Selling

From a technical standpoint, the Nifty slipped below the crucial short-term support zone of 25,645–25,660, aligned with the 20-day Exponential Moving Average (EMA). Once this level was breached, selling momentum intensified, pushing the index toward the 25,350–25,400 support band and breaking prior short-term demand levels.

### Global Tensions, Crude Spike Weigh on Sentiment

The downturn was primarily attributed to rising crude oil prices and mounting tensions between the United States and Iran, which heightened global risk aversion. Investors also engaged in profit booking across heavyweight banking and FMCG stocks, amplifying the decline.

All 30 Sensex constituents closed in negative territory. Among the top laggards were IndiGo, M&M, UltraTech Cement, Trent and BEL, with losses of up to 3.2 per cent during the session.

### Broader Markets and Sectors Under Pressure

Broader indices mirrored the weakness:

* Nifty Midcap 100 fell 1.59 per cent
* Nifty Smallcap 100 declined 1.27 per cent

On the sectoral front, Nifty Realty, Nifty Media and Nifty Auto emerged as the worst performers, each sliding around 2 per cent. Nifty FMCG, along with private and public sector banking indices, dropped more than 1 per cent.

### FPI Selling Intensifies in IT

Foreign Portfolio Investors (FPIs) continued trimming exposure to Indian equities. During the first half of February, FPIs sold IT stocks worth Rs 10,956 crore. Despite a cumulative inflow of Rs 29,709 crore into domestic markets over the same period, the IT sector witnessed the highest selling pressure.

### Safe-Haven Demand Boosts Gold

Gold prices traded higher after US-Iran diplomatic talks failed to produce constructive outcomes, reviving military tensions and triggering fresh safe-haven buying.

Market participants are expected to remain cautious in the near term, given persistent geopolitical uncertainties and volatility in global crude oil prices.

With inputs from IANS