Equity markets suffered their steepest fall in over two months on Wednesday, with the BSE Sensex plunging 1,680 points and the Nifty 50 closing below the 23,900 mark as geopolitical tensions and soaring crude oil prices triggered widespread selling.
The sharp decline was driven by heavy selling in financial, banking, information technology and oil-linked stocks. Investors turned cautious after renewed tensions involving the US and Iran pushed Brent crude prices higher, raising concerns over inflation, corporate margins and India’s import bill.
Among the few gainers were Oil and Natural Gas Corporation (ONGC), Bajaj Auto and Wipro, supported by rising crude prices and selective defensive buying. Major losers included oil marketing companies such as Bharat Petroleum, Hindustan Petroleum and Indian Oil Corporation, along with aviation and financial stocks that came under pressure from higher fuel costs and profit booking.
Broader markets also ended sharply lower, with mid- and small-cap stocks extending losses as investors reduced exposure to riskier assets. Analysts attributed the sell-off to weak global cues, rising volatility, foreign institutional investor selling and caution ahead of the earnings season.
Despite the sharp correction, market experts believe India’s long-term fundamentals remain intact. They expect sentiment to stabilise once geopolitical concerns ease and investors shift their focus back to corporate earnings and domestic economic indicators.
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