Sensex crashes 1,248 points as 5 villains run riot

As the markets took a sharp downturn on Thursday morning, both the Sensex and Nifty 50 indices opened substantially lower. The Sensex fell by 631.58 points, or 0.84 percent, to 74,196.67, while the Nifty 50 dropped by 214 points, or 0.91 percent, to 23,232.80. Brent crude prices surged above $102 per barrel, and US 10-year Treasury yields rose to 5.11 percent, contributing to investor sentiment.

Financial stocks suffered the most significant losses, with HDFC Life Insurance falling 6.28 percent, Bajaj Finance declining 5.21 percent, Axis Bank dropping 4.13 percent, Bajaj Finserv losing 3.54 percent, and SBI Life Insurance falling 2.18 percent. Dr V K Vijayakumar, Chief Investment Strategist at Geojit Investments, warned that as long as these global headwinds persist, a smart market recovery remains unlikely.

Only three Nifty 50 constituents were in the green during early trade, with Tech Mahindra leading the gainers at 0.87 percent. Sun Pharmaceutical Industries and NTPC also showed modest gains. The global backdrop and Wall Street's lower close due to stronger US business activity data and higher US Treasury yields forced a gap-down start.

Market volatility was further fueled by geopolitical uncertainty, particularly concerning the Strait of Hormuz and the upcoming meeting between US and Chinese presidents. Institutional investors remained net buyers in the previous session, despite the downward trend. Analysts predicted a narrow trading range for the Nifty, with a potential breach below 23,285 levels indicating further downside.