Indian stock markets, including the Sensex and Nifty, witnessed a sharp decline in early trading as renewed US-Iran tensions and a significant spike in crude oil prices created a climate of uncertainty for investors.
Sensex and Nifty50 Performance: Key Market Highlights Today
- Indian benchmark indices, Sensex and Nifty, fell significantly in early trade due to escalating US-Iran tensions and a surge in Brent crude oil prices.
- Brent crude rose by 2.55 per cent to $76.05 per barrel, directly impacting market sentiment.
- Market experts note that the renewed geopolitical tensions have introduced uncertainty, temporarily overshadowing positive FII activity and improving macro fundamentals.
- Major laggards included Asian Paints, Reliance Industries, and ITC, while Sun Pharma and HCL Tech saw gains.
- Global markets showed mixed reactions, with South Korea and Japan trading lower, while Shanghai and Hong Kong posted gains.
Benchmark indices Sensex and Nifty tumbled in early trade on Wednesday amid renewed US-Iran tensions and a fresh spike in crude oil prices.
The 30-share BSE Sensex tanked 537.83 points to 77,642.89 in early trade. The 50-share NSE Nifty was down 163.55 points to 24,235.15.
Winners and Losers on Dalal Street
From the Sensex pack, Asian Paints, InterGlobe Aviation, Reliance Industries, ITC, Bajaj Finance and Mahindra & Mahindra were among the major laggards.
Sun Pharma, HCL Tech, Tech Mahindra, Power Grid and ICICI Bank were the gainers.
Impact of Crude Oil and Geopolitics
Brent crude, the global oil benchmark, quoted 2.55 per cent higher at $76.05 per barrel.
"With the renewed US-Iran tensions and the consequent spike in Brent crude to $76, the market is again back to uncertain territory.
"How long this would last and what would be its consequences are now in the realm of uncertainty," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
The market was slowly gaining strength on positive FII activity and improving macro fundamentals, he said.
"The renewed US- Iran tensions have put a temporary question mark on this positive development," Vijayakumar added.
Global Market Overview
In Asian markets, South Korea's Kospi and Japan's Nikkei 225 index traded lower, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index were quoting higher.
US markets ended lower on Tuesday.
Foreign Institutional Investors (FIIs) bought equities worth Rs 393.19 crore on Tuesday, according to exchange data.
