Sensex, Nifty Fall More Than 1% as Geopolitical Tensions Weigh on Markets
MUMBAI — Indian benchmark equity indices ended sharply lower on Wednesday as rising global oil prices and escalating geopolitical tensions dampened investor sentiment.
At the close, the Sensex fell 1,342.27 points, or 1.72%, to settle at 76,863.71, while the Nifty declined 394.75 points, or 1.63%, ending the session at 23,866.85.
The sell-off was broad-based, led by declines in automobile, banking, real estate, information technology, FMCG, and consumer durables stocks. Shares of Bajaj Finance, Axis Bank, Eicher Motors, Mahindra & Mahindra, Bajaj Auto, Kotak Mahindra Bank, and HDFC Bank dropped by as much as 5%.
Among sectoral indices, Nifty Auto was the worst performer, falling 3.15% to 25,926. Nifty Bank dropped more than 2% to 55,735.75, while Nifty Financial Services declined 2.32% and Nifty Private Bank fell 2.41%.
Other sectors also ended lower, with Nifty IT declining 1.24%, Nifty FMCG slipping 1.10%, and Nifty Realty falling 1.71%.
A few defensive sectors, however, managed to buck the broader market trend. Nifty Pharma gained 0.41%, while the healthcare index rose 0.14%. Energy stocks also recorded modest gains, with Nifty Oil & Gas edging up 0.18%.
Broader market indices also weakened alongside the benchmark indices. The Nifty Midcap 150 dropped 1.25% to 56,461.10, while the Nifty Midcap 100 declined 1.14% to 20,839.35. The Nifty Smallcap 50 fell 0.55%, and the Nifty 100 slipped 1.54%.
Analysts attributed the sharp market decline to rising geopolitical tensions in the Middle East and concerns about potential disruptions to global energy supplies.
“Indian equity markets opened cautiously but gradually slipped into a broad-based sell-off as concerns over escalating military activity in the Middle East and the possibility of disruptions in the Strait of Hormuz triggered a risk-off sentiment among investors,” market experts said.
The India VIX, often referred to as the market’s fear gauge, surged nearly 11% during the session, signaling increased uncertainty and fragile investor confidence.
Energy markets also remained in focus as crude oil prices climbed amid concerns over possible supply disruptions in the Strait of Hormuz, a critical route for global oil shipments.
Analysts said market volatility could continue in the near term as investors closely monitor geopolitical developments, movements in energy prices, and institutional investment flows. (Source: IANS)
