Sensex slumps as West Asia crisis deepens

Indian stock markets fell sharply on Wednesday, tracking losses in Asian markets amid rising tensions in West Asia and surging oil prices. The BSE Sensex dropped 1,122.66 points, or 1.40 per cent, to close at 79,116.19, while the NSE Nifty fell 385.20 points, or 1.55 per cent, to 24,480.50, marking its lowest closing in six months.

During the session, the Sensex briefly touched a low of 78,443.20, down 1,795.65 points or 2.23 per cent, before recovering some losses. The Nifty also hit a day low of 24,305.40, down 560.3 points or 2.25 per cent. This marked the fourth consecutive session of losses for the Sensex and the third for the Nifty.

Among top losers, Tata Steel plunged 6.76 per cent, followed by Larsen & Toubro at 4.53 per cent. Bajaj Finance, UltraTech Cement, NTPC, InterGlobe Aviation, Bajaj Finserv, and Kotak Mahindra Bank also declined. Bharti Airtel, Infosys, and Tech Mahindra were among the gainers.

Brent crude surged 3.08 per cent to USD 83.91 per barrel. The rupee slipped to a record low of 92.35 against the US dollar as rising oil prices and global risk concerns weighed on sentiment.

“Global risk sentiment remained fragile due to the Middle East tensions and the closure of the Strait of Hormuz, keeping oil prices volatile. Indian equities mirrored this risk-off environment amid inflationary concerns and a depreciating rupee,” said Vinod Nair, Head of Research at Geojit Investments Limited.

Sector-wise, metal stocks dropped 4 per cent, BSE PSU banks 3.5 per cent, industrials 3.29 per cent, realty 3.16 per cent, commodities 3.12 per cent, capital goods 2.64 per cent, power 2.59 per cent, services 2.25 per cent, and energy 2.23 per cent. The smallcap and midcap indices fell 2.42 per cent and 2.10 per cent, respectively.

Asian markets also suffered heavy losses, with South Korea’s Kospi down 12 per cent and Japan’s Nikkei, Shanghai SSE, and Hong Kong’s Hang Seng declining sharply. European markets were trading higher, while the US ended in the red on Tuesday.

The West Asia conflict intensified as Iran retaliated against joint US-Israel strikes, while the US and Israel conducted further attacks on Iran. On Monday, FIIs sold equities worth Rs 3,295.64 crore, while DIIs bought Rs 8,593.87 crore.

The markets were closed on Tuesday for Holi, following Monday’s decline of 1,048.34 points in the Sensex and 312.95 points in the Nifty.