The NSE Nifty closed at 23,002.15 – the lowest since February 2025, down 775.65 points or 3.3%. The BSE Sensex ended 3.3% lower at 74,207.24 – the lowest since March 2025, shedding 2,496.89 points. Thursday’s slide wiped out gains from the previous three sessions and punched a ₹13 lakh crore-hole in the total market capitalisation of BSE-listed companies.
“The recent attacks on gas reserves are a serious concern that may have spooked investors and pushed oil prices higher,” said Hitesh Zaveri, head – Listed Equities Alternatives at Axis Mutual Fund. “Till this war is resolved, further declines cannot be ruled out.”
Iran’s strikes caused extensive damage to the world’s largest gas plant in Qatar, targeted a refinery in Saudi Arabia, forced a shutdown of UAE gas facilities, and triggered fires at two Kuwaiti refineries, Reuters reported. The retaliation followed Israel’s attack on Iran’s gas infrastructure.
Market participants do not rule out further downside amid the escalating West Asia tensions.
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“There is scope for further downside since oil facilities were hammered, raising concerns that production and transport capabilities in Qatar, Saudi Arabia and Iran may be significantly impaired,” said UR Bhat, co-founder & director, Alphaniti. “This has added pressure on the markets while the closure of the Strait of Hormuz remains unaddressed. Consensus expectations for crude moving towards $150 a barrel may not be far-fetched if escalations persist.”
Fear Gauge Rises 21.8%
Across Asia, Japan dropped 3.4%, South Korea fell 2.7%, Hong Kong slid 2%, while Taiwan and China declined 1.9% and 1.4%, respectively.
At home, all NSE sectoral indices ended lower. The Nifty Auto index tumbled 4.3%, while Nifty Realty fell 3.8%. Consumer durables, IT and metal gauges lost more than 3% each. The Bank Nifty fell 3.4%, dragged by HDFC Bank.
Analysts said the sell-off has prompted traders to initiate fresh bearish bets on the Nifty.
“Around 12-18 Nifty heavyweights saw not just unwinding of long positions but formation of short positions as well,” said Ruchit Jain, head of technical research at Motilal Oswal Financial Services.
Jain pegged 22,500 as the near-term support level but said a durable bottom depends on an easing of geopolitical stress.
Foreign portfolio investors sold a net ₹7,558.2 crore worth of shares on Thursday, while domestic institutions bought ₹3,864 crore. In March, global investors sold ₹79,805.7 crore of equities.
The India VIX jumped 21.8% to 22.8 – the sharpest rise since March 4 – signalling heightened near-term volatility. “With the VIX at extremely high levels, the swings are sharp and could continue,” Jain said.
The Nifty Midcap 150 fell 3.1%, and the Smallcap 250 dropped 2.6%. Of the 4,404 shares traded on the BSE, 3,359 declined and 913 advanced. Both indices were down about 3.3% over the past week till Thursday.