Investors' wealth eroded by Rs 23.44 lakh crore since the beginning of conflict involving the US, Israel and Iran, which has sent shockwaves across equity markets, dragging the BSE Sensex lower by over 6 per cent.
The US and Israel launched military strikes on Iran on February 28, killing Ayatollah Ali Khamenei, Iran's supreme leader.
Following the military offensive, Iran has carried out a wave of attacks targeting Israeli and American military bases in several Gulf countries, including the UAE, Bahrain, Kuwait, Jordan, and Saudi Arabia.
Global oil and gas prices surged after Iran virtually blocked the Strait of Hormuz, a narrow shipping lane between the Persian Gulf and the Gulf of Oman that handles roughly 20 per cent of global oil and LNG (Liquefied Natural Gas).
Brent crude, the global oil benchmark, jumped 6.66 per cent to USD 98.11 per barrel.
Since February 27, the 30-share BSE Sensex has tumbled 5,252.77 points or 6.46 per cent.
The market capitalisation of BSE-listed companies eroded by Rs 23,44,237.26 crore to Rs 4,40,06,434.01 crore (USD 4.77 trillion) during this time.
"Markets remained under pressure on Thursday and extended their recent decline amid weak global cues and persistent geopolitical tensions. The lack of de-escalation signs in Middle East geopolitical tensions continued to unsettle global markets and push crude oil prices higher.
"Oil prices have surged again after the recent dip and are hovering around the USD 97 mark, raising concerns over inflationary pressures, currency weakness and the potential impact on India's trade balance," Ajit Mishra – SVP, Research, Religare Broking Ltd, said.
On Thursday, the Sensex tanked 829.29 points or 1.08 per cent to settle at 76,034.42. During the day, it plunged 992.53 points or 1.29 per cent to 75,871.18.
Mahindra & Mahindra was the biggest loser among the Sensex firms, dropping 4.23 per cent, followed by Maruti, Bajaj Finance, Larsen & Toubro, UltraTech Cement and Trent.
In contrast, NTPC, Power Grid, Tech Mahindra, HCL Tech and Reliance Industries were the winners.
Among BSE sectoral indices, auto tanked 2.92 per cent, FMCG (1.62 per cent), consumer discretionary (1.59 per cent), realty (1.53 per cent), private banks index (1.45 per cent) and top 10 banks (1.29 per cent).
On the other hand, utilities jumped 3.31 per cent, power (2.51 per cent), energy (1.06 per cent), capital goods (0.55 per cent), oil & gas (0.52 per cent) and metal (0.45 per cent).
The BSE smallcap select index declined 0.65 per cent, and the midcap select index dipped 0.55 per cent.
A total of 2,516 stocks declined, while 1,713 advanced and 175 remained unchanged on the BSE.
