Indian equity markets declined on Thursday as Brent crude surged past the $100-a-barrel mark amid continued uncertainty around US–Iran negotiations and partial disruption to flows through the Strait of Hormuz.

The Sensex ended at 77,664, down 853 points, or 1.1 per cent, while the Nifty settled at 24,173, lower by 205 points, or 0.84 per cent. The total market capitalisation of BSE-listed firms fell by ₹3 trillion to ₹466.4 trillion ($4.96 trillion).

Brent crude crossed $100 for the first time since April 13. Oil prices have risen for four consecutive sessions as tensions between the US and Iran escalated, with both sides continuing to restrict access through the Strait of Hormuz — a key chokepoint that accounts for nearly 20 per cent of global oil flows.

India remains particularly vulnerable to elevated crude oil prices, given its heavy reliance on energy imports, with potential spillovers to inflation and the current account.

While the US extended a ceasefire earlier this week without specifying a deadline, Iran has indicated it will not resume negotiations as long as US naval restrictions remain in place. Talks remain stalled over disagreements on Iran’s nuclear programme and its regional engagements.

  “Domestic equities witnessed a broad-based decline as elevated crude oil prices above $100 per barrel, amid the impasse in US–Iran negotiations, weighed on sentiment. The risk-off mood was further intensified by weak global cues, persistent foreign outflows, a depreciating rupee, and higher US treasury yields,” said Vinod Nair, head of research at Geojit Investments.

Market breadth remained weak, with 2,602 stocks declining against 1,681 advancing. “With crude oil once again crossing the $100 mark, the Nifty has entered the support zone of 24,000–24,200. The 20-day exponential moving average is placed around 23,900, making this a crucial zone to hold for maintaining a positive bias. In the interim, selective sectors and themes continue to show resilience, and investors should remain focused on stock selection,” said Ajit Mishra, senior vice-president of research at Religare Broking.

Four-fifths of the Sensex constituents ended in the red. HDFC Bank, down 1.9 per cent, was the biggest drag on the index, followed by ICICI Bank, which fell 1.5 per cent.

Broader markets were relatively resilient, with the Nifty Midcap 100 declining 0.4 per cent and the Nifty Smallcap 100 falling 0.7 per cent. Among sectors, Nifty Auto was the worst performer, down 2.35 per cent.