Mumbai: Indian stock markets witnessed heavy selling on Thursday, with the Sensex plunging 863.09 points and the Nifty falling nearly 310 points by afternoon. Rising crude oil prices, weak global markets and continued foreign investor selling weighed on sentiment.
At 12:44 pm, the Sensex stood at 71,775.62, down 1.19 per cent. The Nifty traded at 22,293.10 at 12:45 pm, declining 1.37 per cent.
Investors Lose Rs 7.69 Lakh Crore
The sharp market fall wiped out nearly Rs 7.69 lakh crore from investors' wealth by noon.
The combined market capitalisation of BSE-listed companies declined from approximately Rs 472.35 lakh crore on Wednesday to Rs 464.67 lakh crore on Thursday.
This represents an erosion of around Rs 7,68,540 crore in market value.
Crude Oil Prices Rise
Brent crude climbed around 2 per cent to USD 103 per barrel amid concerns over oil supplies from the Middle East.
Increasing attacks on ships near the Gulf region and Strait of Hormuz have raised fears of supply disruptions.
Higher crude prices could increase India's import bill, fuel inflation and squeeze corporate profits.
Weak Global Market Signals
Asian stock markets remained under pressure on Thursday as rising bond yields and expensive crude oil weakened investor confidence.
Reports of major technology companies raising billions of dollars through debt also added to market concerns.
Investors consequently remained cautious about making fresh equity investments.
Foreign Investors Continue Selling
Foreign institutional investors sold Indian equities worth more than Rs 6,100 crore on Wednesday.
Persistent foreign selling has increased pressure on domestic benchmark indices.
The Sensex touched an intraday low of 71,691.95, while the Nifty slipped to 22,272.90.
With crude prices elevated and global uncertainty continuing, investors remain concerned about further market volatility in upcoming trading sessions.
