Sensex Sinks To Three-Month Low, Plunges Over 800 Points As Brent Hits $100 Amid Escalating US-Iran Tensions

Mumbai: Indian equity markets extended their losing run for a third consecutive session on Wednesday as escalating US-Iran tensions pushed Brent crude to the crucial $100-a-barrel mark, fuelling concerns over inflation and India's economic outlook.

The BSE Sensex plunged 813.35 points, or 1.08%, to close at 74,764.23. The NSE Nifty 50 dropped 203.60 points, or 0.86%, to settle at 23,431.50.

IT Stocks Lead Market Sell-Off

Information technology shares suffered the heaviest selling pressure. Infosys, HCL Technologies and Tech Mahindra were among the biggest losers on the Nifty.

The Nifty IT index fell more than 3%, emerging as the worst-performing sectoral index. Realty stocks also remained under pressure.

Broader markets followed the benchmarks lower. The Nifty MidCap index declined 0.51%, while the Nifty SmallCap index slipped 0.48%.

Metal stocks, however, showed relative strength and helped limit some of the broader market weakness.

Brent Crude at $100 Raises India Concerns

The surge in Brent crude prices has become a major concern for Indian markets because the country depends heavily on imported oil.

Sustained high crude prices could increase India's import bill, raise input costs, add to inflation and put further pressure on the rupee.

Market sentiment was also affected by renewed foreign institutional investor selling and heightened geopolitical uncertainty surrounding the Middle East.

Nifty Support and Resistance Levels

On the technical front, market watchers see 23,550-23,600 as the immediate resistance zone for Nifty. A sustained move above 23,600 could pave the way towards 23,700-23,800.

On the downside, the 23,400 level is seen as immediate support.

Market volatility is expected to remain elevated until there is greater clarity over US-Iran tensions and the direction of global crude oil prices.