The stock market crashed on Thursday amid concerns surrounding the conflict in West Asia and surging oil prices.
The benchmark Sensex index fell more than 1,700 points, or 2.2%, and was trading just under the 75,000-mark at 12.10 pm. The Nifty had also fallen 2.2%, or by more than 520 points, to about 23,250 points.
Stock markets had begun to slide on March 2 after the conflict in West Asia began. However, the market had risen significantly between Monday and Wednesday.
The India VIX index, which measures volatility in the market, spiked 14% on Thursday.
Major Asian stock indices fell on Thursday. As of 12.15 pm Indian time, Hong Kong’s Hang Seng index had sunk 2% and Shanghai’s composite index 1.6%. While Japan’s Nikkei had tanked 3.3%, South Korea’s Kospi fell 2.5%.
Rupee at record low
The Indian rupee slumped to a record low of 92.6 against the United States dollar at closing on Wednesday amid concerns about the rising global fuel prices.
The Indian currency indicated a further fall to 93 against the US dollar in the non-deliverable forwards market on Thursday. The domestic foreign exchange market was closed on Thursday on account of the Gudi Padwa festival.
Global oil prices have been rising since the conflict in West Asia broke out.
As of 12.20 pm Indian time, the price of benchmark Brent crude jumped nearly 6% to reach $113 per barrel. The price was $78 per barrel on February 27, a day before the conflict started.
Iran has effectively blocked the Strait of Hormuz, the narrow waterbody connecting the Gulf to the Arabian Sea, for most international commercial vessels. About 20% of global petroleum supply passes through the maritime chokepoint.
The global natural gas prices had jumped by nearly 3.5% on Thursday.
India was the largest importer of Qatari LNG after China in 2025. The supply disruption caused by the conflict had already triggered concerns and panic in India and globally.
The jump in oil prices on Thursday followed attacks on Iran’s energy facilities associated with its South Pars gas field, the world’s largest gas reserve that it shares with Qatar. In retaliation, Iran struck several oil and gas facilities in Gulf countries, escalating tensions in the region.
Qatar on Thursday reported “extensive damage” after Iran struck the Ras Laffan industrial complex, home to the world’s largest liquefied natural gas facility. The complex supplied 19% of global liquefied natural gas exports in 2025.
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