Benchmark indices BSE Sensex and NSE Nifty saw one of their sharpest falls in recent months on Thursday as a spike in crude oil prices and weak global cues triggered heavy selling across sectors.
The decline came amid escalating strikes on energy infrastructure in West Asia, which pushed oil prices higher and rattled investor sentiment.
The 30-share Sensex tanked 2,496.89 points or 3.26 per cent to settle at 74,207.24, its biggest single-day fall since June 2024.
During the session, it had slumped 2,753.18 points or 3.58 per cent to 73,950.95.
The 50-share Nifty dropped 775.65 points or 3.26 per cent to close at 23,002.15.
Thursday's fall now joins a list of steep single-day declines seen in recent years, many of which were driven by sudden global or domestic shocks.
Market history shows that sharp declines tend to cluster around periods of uncertainty. The most severe falls in the past decade have largely been linked to the Covid-19 pandemic, geopolitical tensions and unexpected domestic developments.
March 23, 2020: Nationwide lockdown shock
The biggest single-day fall in the history of the Sensex came on this day, when the index crashed 3,934 points, or 13.15 per cent. The trigger was the announcement of a nationwide lockdown to contain Covid-19.
Economic activity came to a standstill almost overnight, leading to panic selling across markets.
March 12, 2020: Pandemic fears intensify
Just days before the first lockdown, the Sensex had already seen a sharp fall of 2,919 points (8.18 per cent). As Covid-19 spread rapidly across countries, global markets reacted with heavy selling, and Indian equities followed suit.
March 16, 2020: Continued sell-off
The pressure did not ease. The Sensex dropped another 2,713 points (7.96 per cent) as concerns over supply chain disruptions and economic slowdown deepened.
This was part of a series of sharp falls during March 2020, when volatility remained extremely high.
June 4, 2024: Election results shock markets
In a very different context, the Sensex plunged over 6,000 points intraday, before settling 4,390 points, after the Lok Sabha election results surprised markets with the BJP failing to gain a majority on its own.
The outcome raised questions about political stability and policy continuity, leading to a sharp sell-off before some recovery later in the session.
March 9, 2020: Oil price war adds to stress
Another major fall came when the Sensex dropped 1,942 points (5.17 per cent) amid a global oil price war between Russia and Saudi Arabia. The decline came at a time when markets were already on edge due to early signs of the pandemic.
