The Indian benchmark indices declined sharply on Wednesday as the Sensex fell 1,122.66 points to settle at 79,116.19 and the Nifty declined over 385 points to close trade at 24,480.50 at 3:30 PM.
In the 30-share BSE Sensex, among the top gainers were stocks like Bharti Airtel, Infosys and TechMahindra. Meanwhile, the laggards included stocks such as Sun Pharmaceuticals, HCLTech, ICICI Bank, ITC and Reliance.
In the broader markets, the Nifty Microcap 250 declined 2.65 per cent as volatility remained extremely high. Sectorally, Nifty IT gained 0.11 per cent and the Nifty Metal index tumbled 3.99 per cent.
Previously, during the early morning session, the Sensex plunged 1,773 points, or 2.21 per cent, to open at 78,465, while the Nifty declined 549 points, also down 2.21 per cent, to open at 24,316.
Indian equity benchmarks opened sharply lower on Wednesday, mirroring weak global cues and heavy FII short positioning in index futures as geopolitical tensions in the Middle East intensified.
Broader markets tracked the benchmarks, with the Nifty Midcap 100 declining 2.18 per cent and the Nifty Smallcap 100 slipping 2.17 per cent.
Sectoral Losses Led By Metal, Realty
All sectoral indices were trading in the red except Nifty IT, which edged up 0.27 per cent.
Nifty metal and realty led the decline, falling 3.18 per cent and 3.04 per cent, respectively. Nifty auto dropped 2.97 per cent, while oil and gas stocks were down 2.86 per cent.
Analysts said defence, airlines, tourism, chemicals and oil-linked stocks are likely to remain in focus as these sectors are directly exposed to elevated crude prices and war-related disruptions.
Volatility indicators reflected growing nervousness, with India VIX at 17.13, prompting calls for caution, particularly among options traders.
Crude Spike Adds To Macro Concerns
Prolonged tensions involving the United States, Israel and Iran are exerting pressure on India’s current account, inflation outlook and currency stability.
Elevated crude prices threaten to inflate the import bill, widen the current account deficit, weaken the rupee, fuel inflation and trigger foreign capital outflows, said Devarsh Vakil, Head of Prime Research at HDFC Securities.
WTI crude rose above $75 per barrel, extending a two-day gain of about 11 per cent. Brent was trading near $81 per barrel as the expanding Middle East conflict and shipping disruptions through the Strait of Hormuz kept supply risks in focus.
Analysts noted that major global indices have turned decisively weak, reflecting a broad risk-off sentiment amid escalating conflict and rising oil prices.
Global Markets Under Pressure
Across Asia, China’s Shanghai index fell 1.43 per cent and Shenzhen declined 0.98 per cent. Japan’s Nikkei dropped 4.17 per cent, Hong Kong’s Hang Seng slipped 2.9 per cent, and South Korea’s Kospi lost 10.78 per cent.
South Korea’s Kospi had plunged over 12 per cent in early trade and temporarily halted trading after recording its worst day in decades, following a similar sell-off in the previous session. A circuit breaker was also triggered on the Kosdaq, which tumbled about 13 per cent.
US markets ended lower overnight, with the Nasdaq down 1.02 per cent, the S&P 500 falling 0.94 per cent and the Dow Jones declining 0.83 per cent.
