Indian stock markets saw a sharp correction on Thursday as investors turned cautious after a strong recent rally. The BSE Sensex fell 931 points (1.2%) to close at 76,631.65, while the Nifty 50 dropped 222 points (0.93%) to end at 23,775.10.
The main trigger was renewed geopolitical tension in West Asia. Hopes of a stable ceasefire between the U.S. and Iran weakened, pushing Brent crude close to $98 a barrel. Higher oil prices raised fresh concerns about imported inflation, India’s current account, and corporate margins.
Banking and financial stocks led the decline, with heavyweights such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank under pressure. Investors also booked profits after a five-session rally, adding to the selling momentum.
