Dalal Street bleeds as soaring crude and geopolitical worries spook investors
The S&P BSE Sensex plunged 1,677.12 points, or 2.15%, to close at 76,503.60, while the NSE Nifty50 fell 516.65 points, or 2.12%, to settle at 23,882.05.
Benchmark stock market indices witnessed a sharp selloff on Wednesday, with the Sensex and Nifty logging their biggest single-day decline in nearly three months, as rising tensions in the Middle East sparked a rally in crude oil prices and dented investor sentiment globally.
The S&P BSE Sensex plunged 1,677.12 points, or 2.15%, to close at 76,503.60, while the NSE Nifty50 fell 516.65 points, or 2.12%, to settle at 23,882.05.
The selloff came after US President Donald Trump said the peace memorandum with Iran was "over" as the two countries exchanged fresh strikes, fuelling fears of supply disruptions and sending crude oil prices sharply higher.
At around 3:30 pm, WTI crude was trading at $74.76 per barrel, up 6.13%, while Brent crude climbed 5.96% to $78.58 per barrel.
The broader market also remained under pressure. The Nifty 100 declined 2.07%, Nifty 200 lost 1.97%, Nifty 500 slipped 1.97%, Nifty Midcap 100 fell 1.55%, while the Nifty Smallcap 100 dropped 2.24%. India VIX, the market's fear gauge, surged over 26% to 14.68, indicating a sharp rise in volatility.
Selling was broad-based across sectors, with every major index ending in the red. Nifty PSU Bank emerged as the worst-performing sector, falling 2.72%, followed by Nifty Chemicals (-2.67%), Nifty Private Bank (-2.52%), Nifty Financial Services Ex-Bank (-2.54%), Nifty FMCG (-2.49%), Nifty Financial Services (-2.47%), Nifty Media (-2.31%), Nifty Auto (-2.23%) and Nifty Oil & Gas (-2.23%). Nifty IT was relatively resilient but still ended 1.37% lower.
Among Sensex constituents, IndiGo parent InterGlobe Aviation led the losses, plunging over 5%. Maruti Suzuki declined more than 4%, while Hindustan Unilever, Bajaj Finance, Kotak Mahindra Bank, Mahindra & Mahindra, ITC, BEL, Reliance Industries, Asian Paints, Larsen & Toubro, HDFC Bank, UltraTech Cement, Adani Ports, Axis Bank and ICICI Bank fell between 2% and 3.5%. Trent was the only stock that managed to limit losses, ending down just 0.17%.
The weakness extended to the currency market as well. The rupee fell 0.6% against the US dollar to 95.555, its weakest level in nearly a month, after the spike in crude prices weighed on Asian currencies.
Vinod Nair, Head of Research, Geojit Investments Limited, said, "Sentiment on the domestic bourses turned decisively negative this session, wiping out the recent gains as renewed flare-ups in West Asia sent crude oil prices climbing. Inflationary worries resurfaced as well, pushing bond yields higher both at home and in the U.S. Volatility remained elevated, with a sharp spike in India VIX as every sector traded in the red, reflecting a macro-driven flight from risk compounded by pre-earnings anxiety over muted Q1 forecasts."
He added that while the upcoming earnings season may not be a major market-moving trigger by itself, investors will closely track management commentary and forward guidance to assess whether earnings weakness could extend into the second quarter and delay FY27 earnings recovery.
"Going ahead, the market's direction will largely be determined by the outcome of the Fed's July policy meeting, the impact of the expiration of the current US reciprocal tariff truce, and the evolution of geopolitical tensions in the Middle East, whether through escalation or resolution," Nair said.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
Benchmark stock market indices witnessed a sharp selloff on Wednesday, with the Sensex and Nifty logging their biggest single-day decline in nearly three months, as rising tensions in the Middle East sparked a rally in crude oil prices and dented investor sentiment globally.
The S&P BSE Sensex plunged 1,677.12 points, or 2.15%, to close at 76,503.60, while the NSE Nifty50 fell 516.65 points, or 2.12%, to settle at 23,882.05.
The selloff came after US President Donald Trump said the peace memorandum with Iran was "over" as the two countries exchanged fresh strikes, fuelling fears of supply disruptions and sending crude oil prices sharply higher.
At around 3:30 pm, WTI crude was trading at $74.76 per barrel, up 6.13%, while Brent crude climbed 5.96% to $78.58 per barrel.
The broader market also remained under pressure. The Nifty 100 declined 2.07%, Nifty 200 lost 1.97%, Nifty 500 slipped 1.97%, Nifty Midcap 100 fell 1.55%, while the Nifty Smallcap 100 dropped 2.24%. India VIX, the market's fear gauge, surged over 26% to 14.68, indicating a sharp rise in volatility.
Selling was broad-based across sectors, with every major index ending in the red. Nifty PSU Bank emerged as the worst-performing sector, falling 2.72%, followed by Nifty Chemicals (-2.67%), Nifty Private Bank (-2.52%), Nifty Financial Services Ex-Bank (-2.54%), Nifty FMCG (-2.49%), Nifty Financial Services (-2.47%), Nifty Media (-2.31%), Nifty Auto (-2.23%) and Nifty Oil & Gas (-2.23%). Nifty IT was relatively resilient but still ended 1.37% lower.
Among Sensex constituents, IndiGo parent InterGlobe Aviation led the losses, plunging over 5%. Maruti Suzuki declined more than 4%, while Hindustan Unilever, Bajaj Finance, Kotak Mahindra Bank, Mahindra & Mahindra, ITC, BEL, Reliance Industries, Asian Paints, Larsen & Toubro, HDFC Bank, UltraTech Cement, Adani Ports, Axis Bank and ICICI Bank fell between 2% and 3.5%. Trent was the only stock that managed to limit losses, ending down just 0.17%.
The weakness extended to the currency market as well. The rupee fell 0.6% against the US dollar to 95.555, its weakest level in nearly a month, after the spike in crude prices weighed on Asian currencies.
Vinod Nair, Head of Research, Geojit Investments Limited, said, "Sentiment on the domestic bourses turned decisively negative this session, wiping out the recent gains as renewed flare-ups in West Asia sent crude oil prices climbing. Inflationary worries resurfaced as well, pushing bond yields higher both at home and in the U.S. Volatility remained elevated, with a sharp spike in India VIX as every sector traded in the red, reflecting a macro-driven flight from risk compounded by pre-earnings anxiety over muted Q1 forecasts."
He added that while the upcoming earnings season may not be a major market-moving trigger by itself, investors will closely track management commentary and forward guidance to assess whether earnings weakness could extend into the second quarter and delay FY27 earnings recovery.
"Going ahead, the market's direction will largely be determined by the outcome of the Fed's July policy meeting, the impact of the expiration of the current US reciprocal tariff truce, and the evolution of geopolitical tensions in the Middle East, whether through escalation or resolution," Nair said.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
