Markets Tumble as Rising US-Iran Tensions Trigger Sell-Off; Sensex Drops Over 800 Points

Mumbai: Indian stock markets opened sharply lower on Wednesday as renewed geopolitical tensions between the United States and Iran rattled investor sentiment, pushing benchmark indices down by nearly 1 per cent in early trading.

The benchmark BSE Sensex plunged as much as 816 points, or 1.09 per cent, to touch an intraday low of 73,833. Meanwhile, the Nifty 50 slipped around 200 points, or 0.86 per cent, to 23,280.

Most sectoral indices traded in negative territory, with technology stocks leading the decline. The Nifty IT index dropped nearly 4 per cent, while the MidSmall IT & Telecom index fell close to 2 per cent. Realty, financial services, PSU banking and media shares also witnessed significant selling pressure.

Broader markets were not spared either, with mid-cap and small-cap indices declining by up to 1 per cent. Market volatility increased sharply as the India VIX index surged more than 8 per cent.

Among major losers on the Nifty were Tata Consultancy Services, which fell around 6 per cent, followed by Tech Mahindra, Infosys and HCLTech, all of which dropped up to 4 per cent. Financial stocks such as Bajaj Finserv, Axis Bank and Shriram Finance also came under pressure.

Market analysts attributed the weakness primarily to rising crude oil prices and escalating geopolitical uncertainty in the Gulf region. Concerns over a possible breakdown in diplomatic efforts between Washington and Tehran have heightened fears of supply disruptions and further increases in energy costs.

International oil prices climbed sharply, with Brent Crude rising more than 1 per cent to $97.16 per barrel. West Texas Intermediate crude gained 2.47 per cent to trade near $96 per barrel.

Across Asia, markets showed a mixed trend. Nikkei 225 surged about 3 per cent, while Hang Seng Index fell nearly 2 per cent. Indonesia’s Jakarta Composite Index dropped around 4 per cent.

Overnight, US markets ended largely flat. The S&P 500 rose 0.13 per cent, while the Nasdaq Composite gained a marginal 0.03 per cent.

Investors are expected to closely monitor developments in the Middle East and movements in crude oil prices, as both factors are likely to influence market direction in the near term.

With inputs from IANS