Why stock markets are falling today: Sensex tumbles 1,100 points, Nifty slips below 25,600 amid oil shock

Why stock market is falling today: Indian equity benchmarks snapped their three-day winning streak on Thursday, February 19, as heavy selling pressure gripped Dalal Street amid a combination of rising crude oil prices, escalating geopolitical tensions between the United States and Iran, and profit booking in heavyweight banking and FMCG stocks.

Benchmarks slide sharply after early highs

The BSE Sensex tumbled as much as 1,106 points from the day’s high to hit an intraday low of 82,864, before trading lower by around 870 points. The sell-off erased most of the gains seen over the past three sessions.

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The Nifty 50 mirrored the weakness, falling 252 points to touch 25,568, after scaling an early high of 25,885. The sharp reversal from higher levels underscored the fragile sentiment prevailing in the market.

Broader markets weaken, volatility spikes

Weakness was not limited to frontline indices. The Nifty MidCap slipped 0.76 per cent, while the Nifty SmallCap declined 0.41 per cent around midday, reflecting caution across market segments.

Meanwhile, volatility picked up sharply, with India VIX rising 7.4 per cent, signalling increased nervousness among traders amid global and domestic uncertainties.

Losers dominate; limited support from IT and pharma

On the Nifty 50, selling pressure was visible across sectors. Stocks such as Trent, Mahindra & Mahindra, Adani Enterprises, InterGlobe Aviation, UltraTech Cement, Bharat Electronics, JSW Steel, Power Grid Corporation and Adani Ports declined between 1 per cent and 2.5 per cent.

On the positive side, gains in ONGC, Infosys, Hindalco, TCS, HDFC Life, Dr Reddy’s Laboratories and Wipro provided only limited support to the benchmarks.

Crude oil surge adds to market worries

Rising oil prices remained a key overhang. Brent crude was trading above the $70 per barrel mark, up 0.26 per cent, while WTI crude gained 0.32 per cent to trade around $65.4 per barrel. Both benchmarks had settled more than 4 per cent higher in the previous session, marking their highest levels since late January.

Market participants are closely tracking developments in the Middle East after Iran announced rocket launches in parts of its southern region and reports emerged of the US deploying warships near Iranian waters. Iran also temporarily shut the Strait of Hormuz, a crucial waterway that handles nearly 20 per cent of global oil transportation, raising concerns over supply disruptions.

For India, which relies heavily on crude imports, any sustained rise in oil prices could add pressure to inflation and the fiscal balance.

Heavyweights drag indices lower

The sharp fall also reflected profit booking after a strong recent rally, during which the Sensex had gained 1,107 points and the Nifty added 348 points over three sessions. Selling in index heavyweights such as Reliance Industries, HDFC Bank, ICICI Bank and State Bank of India weighed heavily on the benchmarks.

Together with Bharti Airtel, ITC, Axis Bank, Larsen & Toubro and Kotak Mahindra Bank, these stocks accounted for nearly 70 per cent of the Sensex’s decline.

With global cues turning volatile and crude prices on the rise, market participants remain cautious, keeping a close watch on geopolitical developments and their potential spillover into domestic markets.