Indian equity markets came under heavy selling pressure on Wednesday as renewed tensions between the United States and Iran pushed crude oil prices back towards the $100-per-barrel mark, raising concerns over inflation and the impact of higher energy costs on the Indian economy.
The Sensex opened around 600 points lower, while the Nifty 50 slipped to around the 23,900 level in early trade.
By 9:30 am, the Sensex had declined 711 points, or 0.91 per cent, to 76,232. The Nifty 50 was down 234.90 points, or 0.98 per cent, at 23,820.90.
The sharp fall reflected broad-based selling across the market. In early trading, 1,555 stocks were trading lower, while only 803 stocks recorded gains, indicating strong selling pressure.
Asian Markets Also Under Pressure
Weak cues from Asian markets added to the pressure on Indian equities. Major Asian indices witnessed significant declines during early trading.
South Korea’s KOSPI fell nearly 3 per cent, while Japan’s Nikkei declined 2.91 per cent. Taiwan’s benchmark index was down 0.91 per cent, Shanghai declined 0.75 per cent and Hong Kong’s Hang Seng index fell 0.65 per cent.
The weakness across global markets came amid heightened concerns over geopolitical tensions and their potential impact on crude oil supplies.
Crude Oil Surge Raises Concerns
The rise in crude oil prices is particularly significant for India, which imports a substantial portion of its crude oil requirements. A sustained increase in global oil prices could put pressure on India’s import bill, inflation and corporate profitability.
Investors are therefore closely monitoring developments in the US-Iran tensions and movements in international crude prices. Continued escalation could keep global markets volatile and increase pressure on energy-sensitive sectors.
With both domestic and Asian markets witnessing heavy selling, investors remained cautious during the early trading session.