Markets fell for a third straight session on Wednesday as escalating tensions in the West Asia pushed crude oil prices higher and weighed on global risk sentiment.
The Nifty 50 closed at 23,914.45, down 141.35 points or 0.59 per cent, while the Sensex fell 373.93 points or 0.49 per cent to 76,570.35. The Nifty opened nearly 200 points lower at 23,858 and touched an intraday low of 23,787 before recovering in the afternoon. The Bank Nifty ended 237.60 points, or 0.41 per cent, lower at 57,172.
“Wednesday brought the sharpest escalation of this conflict yet,” said Sarvam Goel, Founder of Pocketful, referring to reports of Iran mining the Strait of Hormuz and Ukrainian strikes on a Russian oil export terminal in the Baltic Sea. “Two supply arteries under simultaneous pressure is a new and uncomfortable reality for energy-dependent economies.”
Brent crude climbed to around $97 a barrel, taking its weekly gain to nearly 9 per cent, while domestic crude futures moved towards ₹8,600. The US 10-year Treasury yield remained near 4.79 per cent, while India VIX rose more than 5 per cent to 11.59, indicating higher market volatility.
“Markets plunged sharply on Wednesday and lost over half a percent amid weak global cues and rising geopolitical tensions,” said Ajit Mishra, SVP Research at Religare Broking. The rise in oil prices has raised concerns over inflation and global interest rates, he said, advising investors to maintain a cautious stance, keep position sizes light and focus on risk management.
Selling was broad-based, with Auto, IT and Media declining between 1.2 per cent and 1.8 per cent. Energy and oil and gas stocks gained amid higher crude prices. , , , and were among the top laggards, while , , , and gained. The Nifty Midcap 100 declined 0.5 per cent and the Nifty Smallcap 100 fell 0.4 per cent.
The rupee remained relatively firm, trading at 84.97 against the US dollar and gaining around 0.13 per cent. RBI intervention and modest FII buying supported the currency despite higher crude prices. Jateen Trivedi, VP Research Analyst at LKP Securities, expects the rupee to trade in the 84.70–85.20 range, with US Non-Farm Payrolls data among the key near-term triggers.
Gold prices declined about 1 per cent to around ₹1,50,250 per 10 grams domestically, pressured by a stronger dollar and higher bond yields. Trivedi expects gold to trade in the ₹1,48,000–₹1,52,500 range, with US jobs data likely to influence Federal Reserve rate expectations.
On the policy and diplomatic front, Japan’s Credit Rating Agency upgraded India’s sovereign rating to A- from BBB+, citing strong growth and improving fiscal metrics. India and Uzbekistan also elevated their relationship to a Comprehensive Strategic Partnership, with the two countries agreeing on a long-term uranium supply arrangement and a $5-billion bilateral trade target by 2030.
Markets will track India’s Services PMI, the US ISM Services PMI and Initial Jobless Claims for further cues. On the technical front, 23,800 remains a key support for the Nifty, with a break below it potentially taking the index towards 23,600. On the upside, 24,000 and 24,150–24,200 are likely to act as resistance.