The Indian markets crashed on Wednesday as the Sensex tumbled more than 1,342 points to settle trade at 76,863.71, while the Nifty fell over 394 points to close at 23,866.85 at 3:30 PM.
In the 30-share BSE Sensex, among the top gainers were NTPC and Sun Pharmaceuticals and the laggards included stocks like ITC, PowerGrid, TechMahindra, Tata Steel and IndiGo.
In the broader markets, the Nifty Midcap 50 fell 1.66 per cent as volatility remained extremely high. Sectorally, the Nifty Auto index fell 3.15 per cent and the Nifty Pharma and the Nifty Midsmall Healthcare indices inched-up 0.41 per cent.
Previously, during the early morning session the BSE Sensex rang the opening bell near 78,150, slipping close to 50 points, while the NSE Nifty50 started the day above 24,200, taking a hit of 30 points, around 9:15 AM.
Global Markets
Global markets remain on edge as the intensifying crisis in West Asia continues to influence investor sentiment, energy prices and trading patterns across equities.
Oil Prices Dip; FIIs Sell Equities
Brent crude, the global oil benchmark, slipped 0.39 per cent to USD 87.46 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,672.64 crore on Tuesday, according to exchange data. Domestic Institutional Investors (DIIs), however, purchased stocks worth Rs 6,333.26 crore.
Geopolitical Tensions Keep Sentiment Cautious
Although equity markets staged a technical rebound on Tuesday, market participants remain wary amid the deepening crisis in the Middle East.
Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said the ongoing conflict is beginning to affect global financial markets through higher energy prices, disruptions to key shipping routes and a shift in investor risk appetite.
“From an equity market standpoint, geopolitical disruptions of this nature tend to trigger sharp bouts of volatility as global investors rotate toward safer assets and reduce exposure to risk-sensitive markets,” he added.
Asian Markets Trade Higher
Asian markets traded largely in positive territory on Wednesday.
South Korea’s Kospi rose more than 3 per cent, while Japan’s Nikkei 225 advanced 2.5 per cent. China’s Shanghai SSE Composite index and Hong Kong’s Hang Seng index were also trading higher.
Global Cues Remain Mixed
Hariprasad K, Research Analyst and Founder of Livelong Wealth, said global market signals remain mixed as investors closely monitor developments in the Middle East and fluctuations in crude oil prices.
On Tuesday, Indian benchmark indices posted strong gains.
The Sensex jumped 639.82 points, or 0.82 per cent, to settle at 78,205.98. The Nifty climbed 233.55 points, or 0.97 per cent, to close at 24,261.60.
