Stocks claw back from early plunge as oil tops $110

At 11:21 a.m., the Sensex was down 267 points, a sharp improvement from its 679-point morning plunge. The Nifty had also climbed back from below 22,600 to 22,701, though both indexes remained in the red. The recovery came as investors continued to weigh expensive oil, weak Asian markets and widespread selling in Indian shares. ^3,6

The Sensex’s 679-point drop came soon after trading began Thursday. It opened 366 points lower at 73,343, while the Nifty opened down 124 points at 22,688. Selling hit power and metal shares, and most sectors fell. Brent crude rose nearly 2% to about $110.68 a barrel after fresh Houthi attacks in Saudi Arabia. The attacks prompted the United States to order some diplomats and family members to leave its missions there. ^6,2

Oil prices matter to India because the country imports most of its energy. Costlier crude can raise inflation, strain government finances and squeeze company profits. Weak Asian markets added to the pressure: South Korea’s Kospi fell 3.12%, while Hong Kong’s Hang Seng lost 3%. Investors were also watching US bond yields. A market strategist said investors were moving away from mid- and small-cap shares, whose prices had risen faster than company earnings, and toward large companies. ^2,6

That shift has not stopped the day’s broad losses. At 11:21, 2,147 shares had fallen, compared with 1,437 that rose. Nestle India hit a six-month low after food regulators issued notices over product claims and promotions; Indian Hotels, by contrast, rose about 5%. Traders now face company results due during Thursday’s session, including the market’s response to Eternal’s earnings, while crude prices and whether the Nifty can regain 22,800 remain key markers. ^3,4,1