12 March 2026 Punjab Khabarnama Bureau : Indian stock markets declined sharply during intraday trading as benchmark indices BSE Sensex and Nifty 50 slipped significantly amid rising crude oil prices and cautious investor sentiment.
During the trading session, the Sensex fell by around 500 points while the Nifty dropped nearly 200 points. The decline came as investors reacted to a sharp rise in global oil prices, which has raised concerns about inflation and economic pressure on oil-importing countries like India.
Market analysts said that higher oil prices tend to negatively affect sectors such as aviation, logistics, and manufacturing because fuel costs increase operational expenses. Rising energy prices can also contribute to inflation, which may influence monetary policy decisions.
Banking and financial stocks were among the major contributors to the decline in the benchmark indices. Several large-cap banking companies witnessed selling pressure as investors booked profits and reduced exposure to riskier assets.
Information technology stocks also traded lower as weak global cues affected investor confidence. Global markets have been volatile due to geopolitical tensions and uncertainty surrounding energy supply.
Experts say the surge in oil prices is closely linked to tensions in the Middle East, where ongoing conflict has raised concerns about disruptions to energy supply routes. Since India imports a significant portion of its crude oil requirements, any sustained increase in oil prices can impact the country’s trade balance and currency stability.
Foreign institutional investors were also seen reducing positions in several large-cap stocks, contributing to the downward pressure on the indices. Reduced foreign investment often affects liquidity and market momentum.
Despite the overall decline, some defensive sectors such as pharmaceuticals and consumer goods showed relatively smaller losses, helping limit the broader market fall.
Market experts advise investors to remain cautious during periods of high volatility and focus on long-term investment strategies rather than reacting to short-term market swings.
Investors are now closely monitoring developments in global oil markets and geopolitical situations, which are expected to continue influencing market sentiment in the coming sessions.
Summary :
Sensex dropped 500 points and Nifty fell 200 during trading as rising oil prices and global uncertainty triggered selling in banking and IT stocks, increasing volatility in Indian equity markets.