Sensex Crashes 1,677 Points, Nifty Slips 517 Points As US-Iran Tensions And 6% Jump In Crude Oil Prices Trigger Market Sell-Off

Mumbai: Indian equity markets ended sharply lower on Wednesday after fresh tensions between the United States and Iran rattled global financial markets. Investors rushed to sell stocks after US President Donald Trump declared that the interim agreement with Iran was over, increasing concerns about further conflict in West Asia.

The escalation also raised fears of possible disruptions to global crude oil supplies, especially through the Strait of Hormuz, a key shipping route for oil exports.

Benchmark indices fall over 2 percent

The BSE Sensex plunged 1,677.12 points, or 2.15 percent, to close at 76,503.60. During the session, it dropped as much as 1,921.69 points before recovering slightly.

The NSE Nifty also suffered heavy losses, falling 516.65 points, or 2.12 percent, to settle at 23,882.05.

Every stock in the Sensex ended the day in the red, highlighting the broad-based selling across sectors.

Oil prices surge, investors turn cautious

Global crude oil prices jumped sharply after the latest geopolitical developments. Brent crude climbed 6.18% to USD 78.74 per barrel, increasing worries that higher fuel prices could hurt inflation and corporate earnings.

Market experts said investors preferred to reduce risk as uncertainty over the Middle East intensified. At the same time, concerns over weak first-quarter earnings from Indian companies also weighed on market sentiment.

Among the biggest losers on the Sensex were InterGlobe Aviation, Maruti Suzuki, Hindustan Unilever, Bajaj Finance, Kotak Mahindra Bank and Mahindra & Mahindra.

Global markets also under pressure

The weakness was visible across several global markets. South Korea's Kospi fell 5.35 percent, while Japan's Nikkei 225 declined 2.11 percent. China's Shanghai Composite slipped 0.49 percent, though Hong Kong's Hang Seng gained 2.99 percent.

European markets were trading lower, while US markets had closed in negative territory on Tuesday.

Despite the sharp correction, Foreign Institutional Investors (FIIs) remained net buyers on Tuesday, purchasing Indian equities worth Rs 393.19 crore, according to exchange data. However, the fresh geopolitical shock overshadowed that positive trend and triggered heavy selling across the market.