India’s BSE Sensex plummeted about 3.3% on Thursday to close at 74,207, in its worst session since mid-2024, after three straight sessions of advances. The sharp selloff followed a severe escalation in the Middle East conflict, which caused a sharp jump in oil prices amid concerns over a prolonged energy crisis. Iran intensified its attacks on Gulf Arab energy infrastructure, striking a Saudi refinery on the Red Sea and setting Qatari LNG facilities and two Kuwaiti oil refineries ablaze in retaliation for an Israeli attack on its main natural gas field. Adding to the pressure, the US Federal Reserve kept interest rates unchanged, as expected, signaling they may remain at current levels for an extended period and prompting continued equity outflows. All sectors recorded losses, led by financials and banks. Autos, techs and travel and tourism stocks also saw heavy pressure. On equities, HDFC Bank dropped 5.1% after its chairman, Atanu Chakraborty, resigned, citing ethical concerns.
