Domestic equities reversed sharply on Thursday, giving up a large part of the previous session’s gains as crude oil rebounded and concerns resurfaced around the .
The BSE Sensex was down 794.65 points, or 1.02%, to 76,768.25 at 10:02 am, while the Nifty 50 dropped 196.55 points, or 0.82%, to 23,800.80.
The sell-off comes a day after a sharp rally driven by a temporary US-Iran ceasefire and a steep fall in crude prices. But that optimism faded quickly.
Oil prices, which had cooled sharply on Wednesday, ticked higher again as doubts emerged over how long the ceasefire would hold. For a market like India, that is a direct negative.
Higher crude feeds into inflation, weakens the rupee and pressures corporate margins.
That reversal in oil was enough to knock the market off balance.
The bigger issue is uncertainty. The ceasefire is holding, but it is far from stable, with risks around further escalation in the region.
Dr. V K Vijayakumar said the previous rally was triggered by falling crude and short covering in beaten-down stocks, particularly financials. He warned that the uptrend would remain vulnerable if oil prices spike again due to geopolitical developments.
His broader message was simple: the market can remain resilient if crude stays contained, but the risk of reversal remains high.
Thursday’s decline also underlines what yesterday’s move really was—a relief rally, not a trend change.
, Sumeet Bagadia of Choice Broking had flagged that the surge was largely driven by short covering and advised against chasing it, noting that sustainability would depend on crude stability and follow-through buying.
That follow-through is missing.
Heavyweights including HDFC Bank, Infosys, ICICI Bank, Larsen & Toubro and Reliance Industries traded lower, dragging the indices, while gains were limited to a few pockets such as metals and select PSU names.
IT stocks were also under pressure ahead of results from Tata Consultancy Services later in the day.
The takeaway is straightforward. Markets are reacting to headlines, not fundamentals. Oil moves, geopolitical signals and short-term positioning are driving price action.
Until those stabilise, expect volatility, not direction.