Sensex Falls 539 Points as Expiry Volatility and Global Headwinds Drag Markets

MUMBAI: Benchmark equity indices closed significantly lower on Thursday, driven down by derivatives monthly contract expiry volatility, sustained geopolitical tensions in the Middle East, and selling pressure in heavyweights including HDFC Bank and Reliance Industries.

The 30-share BSE Sensex dropped 539.35 points, or 0.70 percent, to settle at 76,933.59. Simultaneously, the broader NSE Nifty 50 declined by 116.90 points, or 0.48 percent, ending below key psychological levels at 24,090.85. The selling momentum wiped out early opening gains, leaving indices at one-week lows.

Sectoral trends remained largely tilted toward the red, with public sector banking, media, metal, auto, and oil and gas stocks bearing the brunt of the sell-off, with each index shedding up to 1 percent. Heavyweights like HDFC Bank, Bharti Airtel, and Reliance Industries were among the major drags on the benchmark indices. Conversely, defensive sectors provided slight insulation, with healthcare, pharmaceuticals, and consumer durables indices gaining nearly 1 percent to cap further losses.

Market analysts noted that ongoing Middle East uncertainty and fluctuating crude oil prices have kept investor sentiment cautious ahead of key global macroeconomic events. Market participants are keeping a close eye on the upcoming U.S. Federal Reserve policy signals for directions on interest rate trajectories and risk sentiment across emerging markets. Despite near-term volatility, market experts highlight that foreign institutional investor (FII) inflows and resilient domestic demand continue to provide underlying support to broader mid-cap valuations.