19.03.202604:19:00UTC+00Sensex Drops from Weekly High

India’s BSE Sensex dropped around 2% to 75,176 on Thursday, pulling back from a one-week high after three straight sessions of gains, as crude oil prices surged above $110 per barrel amid escalating conflict in the Middle East. Sentiment remained cautious, with mounting worries about higher inflation and a deteriorating economic outlook.

Adding to the pressure, the US Federal Reserve left its benchmark interest rate unchanged at 3.75% and signaled that borrowing costs could remain elevated for longer. This dampened hopes of imminent rate cuts and contributed to continued outflows from equities.

Further weighing on the market, reports indicated that HDFC Bank’s chairman had resigned over concerns related to values and ethics, triggering a drop of about 7% in the bank’s US-listed shares.

All major sectors ended in negative territory, led by financials and technology. Among the key decliners were HDFC Bank (-4.2%), Larsen & Toubro (-3.4%), Axis Bank (-2.8%), Eternal (-2.8%), and ICICI Bank (-1.9%).