SENSEX plunges 1,097 points, NIFTY50 drops to 24,450 as markets resume decline after a day's pause

The SENSEX fell as much as 1,204 points and NIFTY50 index touched an intraday low of 24,415 dragged down by losses in banking heavyweights like ICICI Bank, HDFC Bank, State Bank of India, Axis Bank and Kotak Mahindra Bank.

The SENSEX dropped 1,097 points or 1.37% to close at 78,919 and NIFTY50 index tumbled 315 points or 1.27% to settle at 24,450.

The price for a barrel of benchmark US crude shot up 8.5% Thursday to settle at $81.01 per barrel. Brent crude, the international standard, climbed 4.9% to $85.41 per barrel and is likewise near its highest price since 2024.

Oil began its massive rally after US and ⁠Israel launched strikes on Iran on Saturday, with Iran then halting tankers moving through the Strait of Hormuz, which handles world's substantial daily oil supply.

Back home, selling pressure was broad-based as all the major sector gauges compiled by the NSE, barring the measure of information technology (IT) shares, ended lower led by the NIFTY Private Bank index's 2.3% fall. NIFTY Bank, PSU Bank, Financial Services, Auto and Realty indices also fell between 1% and 2.15%.

Mid- and small-cap shares outperformed their larger peers as NIFTY Midcap 100 index declined 0.7% and NIFTY Smallcap 100 index fell 0.24%.

Among the individual shares, shares of companies associated with Indian Railways such as IRCON, Rail Vikas Nigam Limited (RVNL), Titagarh Rail Systems, Jupiter Wagons, RITES and Railtel Corporation surged up to 16% in an otherwise weak session. These shares came under buying interest after media reports suggested that government may consider merging two railway state-run entities IRCON and RVNL.

ICICI Bank was top loser in the NIFTY50 index, the stock declined 3.13% to close at ₹1,315. Eternal, Shriram Finance, State Bank of India, Axis Bank, Ultratech Cement, HDFC Bank and IndiGo also fell between 2.28% and 3%.

On the flipside, Bharat Electronics, ONGC, Reliance Industries, NTPC, Hindalco, Nestle India and Sun Pharma were among the notable gainers in the NIFTY50 index.

The overall market breadth was negative as 1,874 shares ended lower while 1,317 closed higher on the NSE.