Dalal Street Meltdown: Sensex Tanks 1,850 Pts as Banking Crisis and $111 Oil Trigger All-Sector Rout

The carnage on Dalal Street intensified by mid-morning on Thursday, as a leadership crisis at HDFC Bank evolved into a broad-based market rout. While banking remains the epicenter, high-growth sectors like IT and heavyweights like Larsen & Toubro (L&T) are facing massive sell-offs as global crude prices surge past $111.

As of 10:45 AM IST, the BSE Sensex was trading down 1,822 points at 74,882, while the NSE Nifty 50 crashed 538 points to 23,240, marking its worst intraday session in months.

Banking Heavyweights and HDFC Crisis

The primary anchor for the market's decline was the banking sector. HDFC Bank shares were the biggest laggard, trading at ₹804.00 (down 4.63%) at 10:43 AM, after having opened over 8% lower. The resignation of Chairman Atanu Chakraborty over ethical concerns has spooked institutional investors, overshadowing the quick appointment of Keki Mistry as interim chair.

The contagion spread rapidly across the financial landscape:

• ICICI Bank fell 2.23% to ₹1,260.60.
• Axis Bank and State Bank of India (SBI) also faced selling pressure, dropping over 2.8% and 2.1% respectively.
• The Nifty Bank index remained the worst sectoral performer, down roughly 2.4% at the time of the update.

IT and Tech

The IT sector, which is highly sensitive to US Federal Reserve policy, saw sharp declines after the Fed maintained a hawkish stance, projecting only one rate cut for 2026. This has strengthened the US dollar and pushed yields higher, making tech valuations appear expensive.

• Infosys and TATA Consultancy Services (TCS) dropped 2.4% and 1.8% respectively, as the "higher-for-longer" rate narrative dampened hopes for a recovery in discretionary spending by US clients.
• Tech Mahindra and HCLTech also witnessed selling pressure, sliding over 2.5% each by 10:45 AM.

Auto and Infrastructure: The Oil Impact

Surging energy costs, with Brent crude hitting $111.36 per barrel, have raised red flags for fuel-sensitive sectors.

• Larsen & Toubro (L&T), the engineering bellwether, emerged as one of the biggest non-banking losers, crashing 3.4% to ₹3,440.95. Analysts cite rising input costs and potential delays in Middle East projects due to regional instability.
• In the auto pack, Mahindra & Mahindra (M&M) and Maruti Suzuki fell 2.1% and 1.9% respectively. The market is pricing in the impact of higher fuel prices on consumer demand and rising logistics costs for manufacturers.
• Tata Steel and Hindalco led the metals decline, shedding 3.2% as global growth concerns outweighed supply-side fears.

Stocks Bucking the Trend

Despite the sea of red, a handful of stocks saw specific buying interest:

• Mankind Pharma rose 3.1% following a successful brand acquisition deal for Rivotril.
• Urban Company surged over 12% following a significant bulk deal by SBI Mutual Fund.
• G R Infraprojects gained 1.9% after emerging as the lowest bidder for a ₹2,440-crore highway project.

Also read: HDFC Bank Slides 8% at Open; Atanu Chakraborty Exit Spooks Bank Nifty