Sensex, Nifty End Sharply Lower Over One Percent Amid Rising Geopolitical Tensions

Indian benchmark stock indices ended significantly lower on Wednesday as escalating geopolitical tensions and higher crude oil prices unsettled market sentiment.

The downturn reflected widespread selling across major sectors on Dalal Street.

The BSE Sensex closed at 76,863.71, declining 1,342.27 points or 1.72 per cent.

Meanwhile, the Nifty 50 settled at 23,866.85, dropping 394.75 points or 1.63 per cent by the closing bell.

Heavy losses emerged across several key sectors. Automobile, banking, real estate, information technology, fast-moving consumer goods and consumer durable stocks witnessed strong selling pressure.

Major companies such as Bajaj Finance, Axis Bank, Eicher Motors, Mahindra & Mahindra, Kotak Mahindra Bank and HDFC Bank recorded declines of up to nearly five per cent.

Among sectoral indices, the Nifty Auto suffered the steepest fall, sliding 3.15 per cent to 25,926.

Banking stocks also weakened notably. The Nifty Bank dropped more than two per cent to 55,735.75, while Nifty Financial Services and Nifty Private Bank fell 2.32 per cent and 2.41 per cent respectively.

Other sectors recorded moderate losses. Nifty IT slipped 1.24 per cent, Nifty FMCG declined 1.10 per cent, and Nifty Realty dropped 1.71 per cent.

However, defensive sectors showed resilience. Nifty Pharma advanced 0.41 per cent, while healthcare stocks posted a modest 0.14 per cent gain.

The Nifty Oil & Gas index edged up 0.18 per cent.

Broader market indicators also weakened. The Nifty Midcap 150 declined 1.25 per cent, while the Nifty Midcap 100 fell 1.14 per cent.

Market volatility increased significantly as the India VIX surged nearly 11 per cent.

Analysts attributed the decline to rising tensions in the Middle East and fears of disruptions in the Strait of Hormuz, a critical route for global oil supply.

Also Read: Oil Prices Fall After Reports IEA May Release Emergency Crude Reserves