Indian stock markets opened sharply lower on Wednesday as escalating tensions in the Middle East and fears of disruptions in global oil supply triggered widespread selling across Dalal Street. The BSE Sensex plunged nearly 620 points in early trade, while the NSE Nifty slipped below the crucial 23,450 level, reflecting weak investor sentiment amid rising geopolitical uncertainty.
The selloff came after Brent crude oil prices surged above $110 per barrel due to growing concerns over the Iran conflict. Analysts warned that sustained high crude prices could worsen inflation, increase India’s import bill, and put additional pressure on the economy. Weak global cues and losses across Asian markets further dented sentiment.
The Indian rupee also weakened significantly, touching a fresh record low of around 96.96 against the US dollar. Market experts attributed the decline to foreign fund outflows, higher global bond yields, and concerns over rising energy costs.
Auto, banking, and metal stocks witnessed heavy selling pressure during the session. Shares of oil marketing companies, including BPCL, declined as investors worried about pressure on fuel marketing margins amid rising crude prices. Broader market weakness was also visible in midcap and smallcap stocks.
Among the major losers, several auto and metal counters traded deep in the red as investors shifted towards safer assets. Analysts said sectors dependent on fuel and raw material costs are likely to remain volatile if crude prices continue to rise.
Despite the weak market mood, a few stocks managed to post gains. Hindalco Industries advanced after positive business commentary from Novelis, its overseas subsidiary, boosted investor confidence. BLS International also gained strongly following better-than-expected quarterly earnings and positive growth outlook.
However, shares of PI Industries and BPCL remained under pressure even after announcing their financial results, indicating cautious market sentiment amid global uncertainty.
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