In early trade on Wednesday, the BSE Sensex declined more than 450 points to around 77,800, while the NSE Nifty50 slipped over 140 points to trade below the 24,250 mark. The weakness followed a mixed trend in Asian markets as investors assessed the impact of escalating global tensions on energy prices and economic growth.
Higher crude prices remain a key concern for India, one of the world’s largest oil importers. A sustained increase in oil prices could push up inflation, widen the trade deficit and increase input costs for companies, prompting investors to adopt a cautious approach.
Selling pressure was visible across banking, financial, auto, metal and oil-linked stocks, while the broader market also remained under pressure. Midcap and smallcap indices traded lower as investors booked profits after the recent rally.
Among individual stocks, Tech Mahindra and Titan were among the top gainers in early trade, benefiting from selective buying. Adani Enterprises and Bharat Electronics (BEL), meanwhile, figured among the biggest losers, weighing on the benchmark indices.
Investors are now keeping a close watch on geopolitical developments, movements in crude oil prices and the start of the June quarter earnings season for fresh market cues. Analysts expect volatility to persist in the near term but believe India’s strong domestic fundamentals, steady institutional inflows and hopes of healthy corporate earnings could lend support to the market over the medium term.
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