Indian equity markets faced a significant downturn on Thursday, with the S&P BSE Sensex declining by 582.86 points (0.75%) to close at 76,913.50 and the Nifty 50 index falling 180.10 points (0.74%) to 23,997.55. The drop was primarily fueled by surging Brent crude oil prices, which climbed to approximately $120 per barrel amid fears of supply disruptions due to potential sanctions on Iranian ports. This spike in oil prices has raised inflation concerns in India, further impacting investor sentiment.

The market was also affected by weak cues from Asian markets and ongoing foreign fund outflows. Banking stocks, including major players like ICICI Bank and HDFC Bank, contributed significantly to the decline. The rupee experienced volatility, touching an all-time low of 95.3450 during the session, which added to the strain on domestic equities.

In the broader market, the BSE 150 MidCap Index fell 1.01%, while the BSE 250 SmallCap Index dropped 0.50%. The market breadth was negative, with 2,532 shares declining compared to 1,649 that advanced. The NSE's India VIX, a measure of market volatility, surged 5.86% to 18.46. Investors are now looking ahead to upcoming monetary policy decisions from global central banks, which may further influence market dynamics.