Sensex plunges 1,600 points as Trump ends Iran truce, oil surge rattles markets

Mumbai- Indian benchmark equity indices witnessed a steep sell-off on Wednesday, with the Sensex and Nifty tumbling more than 2 per cent as rising crude oil prices, weak global cues and renewed geopolitical tensions weighed heavily on investor sentiment. The market slump accelerated after US President Donald Trump declared that the interim agreement with Iran was "over", raising fears of further escalation in the Middle East and potential disruptions to global energy supplies.

By the afternoon, the Sensex had fallen by more than 1,600 points, while the Nifty was down nearly 500 points. Selling pressure was widespread, with 45 of the 50 Nifty stocks trading in negative territory.

The sharp decline wiped out nearly Rs 4 lakh crore in investor wealth, as the combined market capitalisation of all companies listed on the BSE slipped below Rs 476 lakh crore.

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The surge in crude oil prices, coupled with uncertainty over developments in the Gulf region, fuelled a risk-off mood across global markets, prompting investors to cut exposure to equities.

Earlier in the day, the Sensex opened 364.27 points, or 0.46 per cent lower, at 77,816.45, while the Nifty fell 139.15 points, or 0.57 per cent, to 24,259.55.

Among sectoral indices, Nifty Oil & Gas led the losses, dropping more than 1 per cent in early trade. Nifty Media, Nifty PSU Bank, Nifty Realty, Nifty Cement, Nifty Metal, Nifty Auto and Nifty FMCG also traded lower by up to nearly 1 per cent during the opening session.

With inputs from IANS