MUMBAI, India — Indian benchmark equity indices closed sharply lower Wednesday as rising global oil prices and escalating geopolitical tensions dampened investor sentiment across sectors.
At the close of trading, the Sensex fell 1,342.27 points, or 1.72 percent, to settle at 76,863.71. The Nifty also declined significantly, dropping 394.75 points, or 1.63 percent, to end the session at 23,866.85.
The sell-off was led by declines in automobile, banking, real estate, information technology, fast-moving consumer goods, and consumer durable stocks. Major laggards included Bajaj Finance, Axis Bank, Eicher Motors, Mahindra & Mahindra, Bajaj Auto, Kotak Mahindra Bank, and HDFC Bank, with some stocks falling by as much as 5 percent.
Among sectoral indices, Nifty Auto was the worst performer, sliding 3.15 percent to close at 25,926. Nifty Bank fell more than 2 percent to 55,735.75, while Nifty Financial Services dropped 2.32 percent and Nifty Private Bank declined 2.41 percent.
Other sectors also ended lower. Nifty IT slipped 1.24 percent, Nifty FMCG fell 1.10 percent, and Nifty Realty declined 1.71 percent.
Some defensive sectors, however, managed to post modest gains. Nifty Pharma rose 0.41 percent and the healthcare index gained 0.14 percent. Energy stocks also edged higher, with the Nifty Oil & Gas index advancing 0.18 percent.
Broader markets mirrored the weakness seen in frontline stocks. The Nifty Midcap 150 dropped 1.25 percent to 56,461.10, while the Nifty Midcap 100 declined 1.14 percent to 20,839.35. The Nifty Smallcap 50 fell 0.55 percent and the Nifty 100 lost 1.54 percent.
Market analysts attributed the downturn to growing geopolitical tensions in the Middle East and fears of 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,” according to experts.
The India VIX, often referred to as the market’s fear gauge, surged nearly 11 percent during the session, reflecting heightened uncertainty and fragile investor confidence.
Energy markets also remained a key focus for investors, with crude oil prices climbing amid concerns that the conflict could disrupt supplies through the Strait of Hormuz, one of the world’s most critical oil shipping routes.
Analysts said markets may remain volatile in the near term as investors continue to monitor geopolitical developments, energy price movements, and institutional fund flows. (Source: IANS)
