The benchmark equity indices Sensex and Nifty tumbled sharply by more than 3 percent on Thursday, snapping a three-day rally, amid a spike in crude oil prices and weak global cues.

The Sensex tanked 2,496.89 points or 3.26 percent - its biggest single-day plunge since June 2024 -- to settle at 74,207.24. During the day, it dived 2,753.18 points or 3.58 percent to 73,950.95. The Nifty tumbled 775.65 points or 3.26 percent to end at 23,002.15.

All 16 major sectoral indices on the Nifty traded in the red, with financial and banking stocks declining around 3 percent each, led by heavy selling in HDFC Bank.

Broader markets also remained under pressure, with the Nifty Smallcap100 and Nifty Midcap100 indices falling about 2 percent each.

On Wednesday, Israel struck the South Pars gas field, the largest plant in Iran, and the Asaluyeh oil facility. Following the strikes, the Islamic Revolutionary Guard Corps of Iran (IRGC) warned that Gulf energy sites were once again "legitimate targets".

Brent crude oil rose as much as $119 per barrel during the last-hour trading before resuming levels closer to $114l.

European natural gas futures soared by more than 30% and traded as high as €74 per MWh, a price level not seen since the end of 2022.

HDFC Bank, ETERNAL and Shriram Finance were among the major laggards in the Nifty50 pack, declining up to 5 percent, while Oil & Natural Gas Corporation, Reliance Industries and Coal India were the only gainers in the 50-pack index, rising up to 2 perent. Market breadth was negative as about 885 shares advanced, 2549 shares declined and 146 shares unchanged.