Indian equities witnessed a steep decline on Thursday, with benchmark indices plunging sharply as investors turned cautious amid a mix of global and domestic pressures. The BSE Sensex dropped nearly 2,500 points, while the Nifty 50 also recorded significant losses, reflecting widespread selling across sectors.

The fall led to a substantial erosion of market capitalisation, with investors collectively losing over Rs 14 lakh crore as sentiment turned decisively risk-averse.

One of the primary factors behind the slump was the sharp rise in global crude oil prices, which climbed beyond $115 per barrel amid escalating tensions in the Middle East. For an oil-import-dependent country like India, such spikes raise concerns about inflation, currency weakness, and pressure on corporate earnings.

Adding to the unease were developments at HDFC Bank, where the resignation of part-time chairman Atanu Chakraborty unsettled investors. The stock saw a notable decline, dragging banking indices lower and amplifying the broader market weakness.

The sell-off was not limited to a single sector. Banking stocks including ICICI Bank and State Bank of India moved lower, while infrastructure major Larsen & Toubro and financial firms such as Bajaj Finance also faced selling pressure.

IT stocks like Infosys, TCS, and Wipro remained subdued due to weak global cues, while aviation player IndiGo declined as higher fuel costs threatened profitability.

Even defensive counters such as ITC Limited and Hindustan Unilever were not spared, though their losses were relatively contained. In contrast, Coal India showed some resilience, supported by elevated energy prices.

Market experts believe volatility may persist in the near term, as geopolitical tensions and crude price movements continue to influence investor sentiment. The stance of the US Federal Reserve, which has indicated a cautious approach to rate cuts, has further added to global uncertainty.

Going forward, investors are expected to closely track developments in the Middle East and trends in oil prices. Any easing in geopolitical tensions could help markets recover, while sustained pressure on crude may keep equities under stress.