Indian stock markets, including the Sensex and Nifty, witnessed a sharp decline in early trading as escalating geopolitical tensions in West Asia and a significant surge in crude oil prices fuelled investor anxiety across global equities.
Sensex and Nifty50 Performance: Key Market Highlights Today
- Indian stock market indices, Sensex and Nifty, tumbled significantly in early trade due to escalating tensions in West Asia and a surge in global crude oil prices.
- Brent crude, the global oil benchmark, rose to $95.37 per barrel, with WTI crude surging over 8 per cent, reigniting concerns over potential disruptions to energy supplies.
- Analysts warn that surging crude oil prices and rising global bond yields will continue to pressure Indian markets, despite a resilient domestic growth outlook.
- Major laggards among Sensex firms included InterGlobe Aviation, Eternal, Mahindra & Mahindra, UltraTech Cement, Bajaj Finserv, and Bajaj Finance.
- Asian markets, including South Korea's Kospi and Japan's Nikkei 225, also traded lower, following a decline in US markets on Tuesday.
Stock market benchmark indices Sensex and Nifty slumped in early trade on Wednesday, tracking a bearish trend in global equities and higher oil prices due to escalating conflict in West Asia.
The 30-share BSE Sensex tanked 788.52 points to 76,155.76 in early trade.
The 50-share NSE Nifty slumped 269 points to 23,786.80.
Winners and Losers on Dalal Street
Among the 30 Sensex firms, InterGlobe Aviation, Eternal, Mahindra & Mahindra, UltraTech Cement, Bajaj Finserv and Bajaj Finance were the major laggards.
Adani Ports and Sun Pharma were the winners.
Expert View: What Investors Should Watch Next
"Indian markets are likely to remain under pressure as surging crude oil prices and rising global bond yields continue to weigh on investor sentiment amid the escalating conflict in the Middle East.
"While India's resilient domestic growth outlook provides an underlying cushion, external macroeconomic and geopolitical risks are expected to dominate near-term market direction, keeping the broader outlook cautious," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Crude oil has emerged as the key near-term risk for domestic equities, he said adding that WTI crude has surged more than 8 per cent over the past two sessions following renewed US-Iran military tensions, reigniting concerns over potential disruptions to energy supplies from the region.
"The escalation of the US-Iran conflict and the consequent 5 per cent spurt in Brent crude overnight to $96 is a sentiment negative," V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
How Global Markets Impacted Indian Equities
In Asian markets, South Korea's Kospi tumbled over 3 per cent, Japan's Nikkei 225 index dropped nearly 3 per cent.
Shanghai's SSE Composite index and Hong Kong's Hang Seng index also traded lower.
US markets ended lower on Tuesday.
"Wall Street closed lower on Tuesday, with the S&P 500 falling 0.7 per cent, the Dow Jones Industrial Average declining 0.8 per cent and the Nasdaq losing 1 per cent, as rising energy prices and bond yields intensified concerns tighter monetary conditions ahead.
The US 10-year Treasury yield climbed to around 4.79 per cent, close to a 20-month high.
"Asian markets have followed Wall Street lower this morning as investors reassess the impact of higher energy costs alongside the broader global bond sell-off," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,143.38 crore on Tuesday, according to exchange data.
Brent crude, the global oil benchmark, traded 0.76 per cent higher at $95.37 per barrel.
