Mumbai: Indian equity markets witnessed heavy selling pressure on Tuesday, with benchmark indices Sensex and Nifty falling nearly 2 per cent amid rising crude oil prices, continued tensions between the US and Iran, and weak investor confidence.
The 30-share BSE Sensex plunged 1,456.04 points, or 1.92 per cent, to close at 74,559.24. During intra-day trade, the index dropped as much as 1,565.78 points. The NSE Nifty also slipped 436.30 points, or 1.83 per cent, to settle at 23,379.55.
Oil Prices, Rupee Weakness Hurt Markets
Market sentiment remained under pressure as Brent crude oil prices surged 2.75 per cent to USD 107.1 per barrel. Higher crude prices are a major concern for India as the country imports most of its oil requirements.
Adding to worries, the Indian rupee weakened by 35 paise to hit a record low of 95.63 against the US dollar. Analysts said the falling rupee and rising oil prices could increase inflationary pressure and hurt economic growth.
Foreign Institutional Investors (FIIs) also continued to sell Indian equities aggressively. According to exchange data, FIIs sold shares worth Rs 8,437.56 crore on Monday.
US-Iran Conflict Deepens Investor Concerns
Global uncertainty increased after US President Donald Trump made strong remarks about the Iran ceasefire proposal. Trump described the ceasefire as being on “massive life support” after rejecting Tehran’s latest peace offer.
Experts said investors are becoming cautious due to fears of a prolonged geopolitical conflict and its impact on global energy supplies.
Hariprasad K, Research Analyst and Founder of Livelong Wealth, said the market decline is not just profit booking but reflects a broader “confidence shock” among investors.
IT, Realty Stocks Lead Decline
The sell-off was broad-based, with IT and realty shares witnessing sharp losses. Among Sensex companies, Tech Mahindra, Adani Ports, HCL Tech, Tata Consultancy Services, Titan and Bharat Electronics were among the biggest losers. State Bank of India was the only stock that ended higher.
Asian markets mostly closed lower, while European markets were also trading in negative territory.
