Sensex Tanks Over 600 Points Amid Crude Oil Surge
The Sensex and Nifty plummeted in early trade on Thursday due to a surge in crude oil prices. The 30-share BSE Sensex tanked 632.68 points to 74,189.55, while the 50-share NSE Nifty dropped 216.15 points to 23,222.55.
The increase in crude oil prices above USD 100 per barrel had a significant impact on the market sentiment. Brent crude, the global oil benchmark, reached USD 102.2 per barrel despite trading 0.90% lower.
Several banking and NBFC stocks also saw significant declines, with Bajaj Finance dropping 4.75% and Axis Bank declining by 3.49%. On the other hand, Tech Mahindra, Sun Pharma, HCL Tech, ICICI Bank, and Tata Consultancy Services saw gains.
V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, warned that the market's prospects for a smart recovery appear remote due to the sharp spike in Brent crude above USD 102 and rising US Treasury yields.