Domestic equities faced a downturn on Wednesday due to heightened tensions between the US and Iran. Benchmark indices dropped by up to 1%, with Sensex falling 816 points to an intraday low of 73,833, and Nifty declining by 200 points to touch 23,280.
Sectoral indices, especially technology stocks, experienced significant losses. Nifty IT plummeted nearly 4%, while Nifty MidSmall IT & Telecom index fell close to 2%. Other sectors like realty, financial services, PSU banking, and media also saw declines.
Mid-cap and small-cap indices slipped by up to 1%, and India VIX surged over 8%. Among Nifty constituents, Tata Consultancy Services Ltd (TCS) saw a 6% drop, with Tech Mahindra, Infosys, and HCLTech also declining by up to 4%.
Market experts highlighted that rising crude prices and geopolitical uncertainties pose near-term risks for domestic equities. Despite positive global cues, elevated oil prices are keeping investors cautious. The uncertainty surrounding a potential US-Iran peace deal and fresh Gulf tensions are impacting investor sentiment.
International benchmark Brent crude rose over 1% to $97.16 per barrel, while US West Texas Intermediate (WTI) crude increased by 2.47% to trade around $96 per barrel. Asian markets showed mixed trends, with Japan’s Nikkei surging around 3%, Hong Kong’s Hang Seng slipping nearly 2%, and Indonesia’s Jakarta Composite declining about 4%.
In the US, Wall Street closed mostly flat, with the S&P 500 edging up 0.13% and the Nasdaq gaining 0.03%.
