Sensex tumbles 813 points amid escalating tensions in West Asia, oil price surge

Market benchmark indices ended lower for the third straight day on Wednesday, with the Sensex tumbling 813.35 points and the Nifty dropping below 23,450, as escalating tensions in West Asia drove crude oil to over $100 per barrel.

Selling in IT stocks and fresh foreign fund outflows also dented investors’ sentiment.

The 30-share BSE Sensex tanked 813.35 points, or 1.08%, to settle at the day’s low of 74,764.23.

The 50-share NSE Nifty declined 203.60 points, or 0.86%, to end at 23,431.50.

Among the 30 Sensex firms, HCL Tech dropped the most by 4.55%. Infosys, Tech Mahindra, Tata Consultancy Services, HDFC Bank and Hindustan Unilever were also among the major laggards.

Adani Ports, Tata Steel, Trent and NTPC were among the winners.

Brent crude, the global oil benchmark, jumped 2.67% to $100.5 per barrel.

“Indian equity markets extended their decline for a third consecutive session, with benchmark indices ending firmly lower as persistent selling pressure and a broad risk-off mood kept sentiment subdued. Elevated crude oil prices, lingering geopolitical tensions and a sharp rise in market volatility continued to weigh on investor confidence, reinforcing the market’s prevailing bearish undertone,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

India VIX climbed more than 6%, reflecting increased hedging activity and growing caution over the near-term outlook, he added.

In Asian markets, South Korea’s Kospi and Shanghai’s SSE Composite index ended higher, while Japan’s Nikkei 225 and Hong Kong’s Hang Seng index settled lower.

Markets in Europe were trading lower. US markets ended in negative territory on Tuesday.

Foreign Institutional Investors (FIIs) offloaded equities worth ₹123.19 crore on Tuesday, according to exchange data.

On Tuesday, the Sensex dropped 555.23 points, or 0.73%, to settle at 75,577.58. The Nifty declined 144.05 points, or 0.61%, to end at 23,635.10.