Sensex Falls Over 550 Points, Nifty Slips Below 24,250 As Oil Prices Surge After US Strikes On Iran

Indian equity markets extended their decline on Wednesday as escalating tensions between Iran and the US triggered a sharp rise in crude oil prices, raising concerns over inflation and global energy supply disruptions.

The benchmark Sensex dropped more than 550 points during the session, while the Nifty 50 slipped below the 24,250 mark, falling nearly 0.6%.

Broader markets also remained under pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 indices declining around 0.5% each.

Several major stocks dragged the market lower. UltraTech Cement, Asian Paints and InterGlobe Aviation (IndiGo) were among the biggest losers on the Sensex, declining 2-3%.

Other heavyweights, including Maruti Suzuki, Bajaj Finance, ITC, Kotak Mahindra Bank, State Bank of India, Bajaj Finserv, Tata Steel, Bharat Electronics and Reliance Industries, also traded lower by nearly 1%.

Information technology companies provided limited support, with Infosys and Tata Consultancy Services (TCS) among the few stocks trading with marginal gains. Sun Pharma also remained in positive territory.

Investor caution increased amid heightened geopolitical uncertainty. India VIX, a measure of market volatility, rose more than 5% to 12.25 during morning trade, indicating increased nervousness among investors.

Sectoral indices such as Nifty Oil & Gas, Financial Services, Auto, Metal and PSU Bank declined nearly 1%, while Nifty Pharma gained around 0.7%.

Market breadth remained weak, with 1,574 stocks declining on the NSE compared with 749 advancing stocks. Around 123 stocks remained unchanged.

Crude oil prices surged following renewed tensions in West Asia. Brent crude futures jumped nearly 3% to cross $76 per barrel, while West Texas Intermediate (WTI) crude rose to around $72 per barrel.

The rise in oil prices followed US military strikes on Iran and the reinstatement of sanctions on Iranian crude sales, increasing concerns over the stability of the regional ceasefire and possible disruptions to global oil supplies.

The US Central Command said the strikes were carried out after Iranian attacks on three commercial vessels passing through the Strait of Hormuz.

Despite the weak market sentiment, foreign institutional investors continued their buying streak. FIIs remained net buyers of Indian equities for the fifth consecutive session on Tuesday, purchasing shares worth over ₹393 crore, according to provisional NSE data.

Meanwhile, the Indian rupee opened weaker on Wednesday, declining 0.2% to 95.1725 against the US dollar compared with its previous close of 94.9675.