SENSEX plunges 1,236 points, NIFT50 ends below 25,500 as markets post worst day in over two weeks

The Indian equity benchmarks posted their worst day since Budget day on Thursday, February 19, on the back of a broad-based selling pressure as investor sentiment turned cautious amid rising geopolitical tensions.

The SENSEX fell as much as 1,470 points and NIFTY50 index touched an intraday low of 25,388 dragged down by losses in the index heavyweights like Reliance Industries, HDFC Bank, ICICI Bank, Bharti Airtel, Mahindra & Mahindra and Axis Bank.

The SENSEX dropped 1,236 points or 1.5% to close at 82,498 and NIFTY50 index tumbled 365 points or 1.4% to settle at 25,454.

Investor sentiment turned sour after media reports suggested that United States issued new threats against Iran, despite the conclusion of Iran-US nuclear talks in Geneva on Tuesday, with Iran saying that it reached an understanding with the US on the main “guiding principles” to resolve their disputes. Furthermore, the US-brokered talks between Ukraine and Russia concluded on Wednesday without a breakthrough.

Following this development Brent crude futures surged past $70 per barrel, its highest level in nearly six months.

Selling pressure was broad-based as all the major sector gauges compiled by the National Stock Exchange ended lower led by NIFTY Realty index's over 2.5% fall. NIFTY Auto, Bank, Financial Services, Metal, FMCG, IT, PSU Bank, Private Bank, Oil & Gas and Consumer Durables indices also declined between 1%-2%.

Broader markets also faced selling pressure as NIFTY Midcap 100 index dropped 1.6% and NIFTY Smallcap 100 index fell 1.3%.

Among the individual shares, Multi-Commodity Exchange of India (MCX) shares gained as much as 4.44% to an intraday high of ₹2,436 on margin relief on gold and silver futures.

In a circular issued during post-market hours on Wednesday, the domestic commodities derivatives exchange notified investors that it was withdrawing additional margins levied on gold and silver futures on February 5.

InterGlobe Aviation was top loser in the NIFTY50 index, the stock fell 3.3% to close at ₹4,817.

Ultratech Cement, Mahindra & Mahindra, Bharat Electronics, Trent, Bajaj Auto, Adani Ports, Grasim, Shriram Finance and Reliance Industries also fell between 2.4%-3%.

On the flipside, ONGC, HDFC Life and Hindalco were notable gainers in the NIFTY50 index.

The overall market breadth was extremely negative as 2,308 shares ended lower while 831 ended higher on the NSE.