Markets Open Deep In Red As Middle East Conflict Rattles Investors

Indian equity markets witnessed a steep decline on Wednesday morning, tracking weak global signals and aggressive foreign institutional investor (FII) short positions in index futures amid escalating tensions in the Middle East.

At 9:28 AM, the BSE Sensex plunged 1,773 points, or 2.21 per cent, to 78,465, while the Nifty 50 dropped 549 points, or 2.21 per cent, to 24,316.

Broader markets also declined, with the Nifty Midcap 100 and Nifty Smallcap 100 falling over 2 per cent each, signalling widespread selling.

All sectoral indices traded in the red except Nifty IT. Metal and realty stocks led the losses, while auto, oil and gas counters also fell sharply.

Analysts said defence, airlines, tourism and oil-linked shares may remain under pressure amid rising crude prices and escalating tensions involving the United States, Israel and Iran, which have heightened concerns over India’s current account, inflation and currency stability.

Devarsh Vakil of HDFC Securities warned that higher oil prices could widen the import bill, weaken the rupee and spur capital outflows, with WTI crude climbing above $75 per barrel.

Meanwhile, Brent crude traded near $81 per barrel, with supply risks intensified by disruptions around the Strait of Hormuz.

Asian markets declined sharply, with Japan’s Nikkei 225 down 4.17 per cent, Hong Kong’s Hang Seng Index falling 2.9 per cent, and South Korea’s Kospi plunging over 10 per cent, triggering trading halts.

US markets also ended lower, as the Nasdaq slipped 1.02 per cent, the S&P 500 lost 0.94 per cent, and the Dow Jones fell 0.83 per cent.

Volatility remained elevated, with India VIX at 17.13, keeping traders cautious.

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