Indian benchmark equity indices, the Sensex and Nifty, experienced a significant drop of over 2% each due to factors like escalating crude oil prices, weak global cues, and renewed geopolitical tensions. The market decline accelerated in the second half of the trading session following US President Donald Trump’s statement declaring an end to the interim agreement with Iran, raising worries about heightened tensions in the Middle East and their potential impact on global energy supplies.
Amidst trading, the Nifty plummeted nearly 500 points, while the Sensex saw a decline of more than 1,600 points. A broad-based sell-off was observed across the market, with 45 out of the 50 Nifty constituents trading in the negative territory. The sharp correction led to a loss of almost Rs 4 lakh crore in investor wealth, causing the combined market capitalization of all BSE-listed companies to fall below Rs 476 lakh crore.
The surge in crude oil prices, along with uncertainties in the Gulf region, contributed to a risk-averse sentiment in global markets, prompting investors to reduce their exposure to equities. In early trading, the Sensex opened 364.27 points lower at 77,816.45, while the Nifty slipped 139.15 points to 24,259.55. Notably, Nifty Oil & Gas registered the most significant losses among sectoral indices, dropping over 1% during the opening session.
