Markets opened sharply lower on Wednesday, with the Nifty 50 slipping below the critical 24,000 mark and the Sensex tumbling by over 700 points, as a surge in crude oil prices, triggered by escalating U.S.-Iran tensions and rising global bond yields, rattled investor sentiment.
The Sensex, which closed at 76,944.28 on Tuesday, opened at 76,471.32 and was trading at 76,240.13, down 704.15 points or 0.92 per cent. The Nifty 50, which ended the previous session at 24,055.80, opened at 23,858.00 and slipped further to 23,818.80, a loss of 237 points or 0.99 per cent.
Crude oil surges as US-Iran tensions escalate
Brent crude surged nearly 5 per cent overnight to $96 a barrel after fresh military exchanges between the U.S. and Iran, while WTI crude crossed $90 per barrel for the first time in over a month. The U.S. 10-year Treasury yield climbed to 4.79 per cent, its highest level in roughly 20 months. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Investments, said the escalation of the U.S.-Iran conflict and the “consequent 5 per cent spurt in Brent crude overnight to $96 is a sentiment negative,” while warning that “the big threat is the rising bond yields in the U.S.” and that “if the 10-year yield touches 5 per cent, that has the potential to trigger a big correction in equity markets globally.”
On Wall Street, the Nasdaq Composite fell over 1 per cent, while the S&P 500 and the Dow Jones Industrial Average each declined 0.8 per cent, extending losses for a third straight session. Asian markets followed, with Japan’s Nikkei shedding roughly 2.61 per cent. Gold fell more than 3 per cent in a single session as rising yields eroded safe-haven demand.
Coal India leads Nifty gainers
Among Nifty gainers, Coal India led with a 3.14 per cent rise, trading at ₹414.20 against a previous close of ₹401.60, on volumes of over 37.5 lakh shares worth ₹15,516.35 lakh. ONGC added 0.34 per cent to ₹237.25, Sun Pharma edged up 0.20 per cent to ₹1,932.80, L&T gained a marginal 0.03 per cent to ₹3,981.40, and Adani Ports rose 0.02 per cent to ₹1,647.80. The gains in upstream energy stocks reflected the sharp rise in global crude prices.
Infosys, auto and NBFC stocks face selling
On the losing side, Infosys was the steepest decliner, falling 2.79 per cent to ₹1,123.80 from a previous close of ₹1,156.00 on volumes of over 5.36 lakh shares worth ₹6,078.79 lakh. Eicher Motors dropped 2.50 per cent to ₹7,770.50, Shriram Finance declined 2.28 per cent to ₹1,035.00, Wipro fell 2.26 per cent to ₹177.60, and Mahindra & Mahindra lost 2.15 per cent to ₹3,188.80. The losses in IT stocks reflected broader pressure on the sector, while automobile and NBFC names faced selling on concerns over higher oil costs and tighter financial conditions.
Ponmudi R, CEO of Enrich Money, noted that “rising bond yields pose a double challenge for equities, as they increase the discount rate used in equity valuation models, reducing the present value of future cash flows, while also making fixed-income investments relatively more attractive.”
Strong domestic signals offer some support
Not all domestic signals were negative. India’s GDP grew 7.8 per cent in the latest reading, GST collections remained strong, and foreign institutional investors returned as net buyers of ₹1,143 crore on Tuesday after two sessions of selling. Domestic institutions added ₹1,847 crore. The Indian rupee strengthened for a third consecutive session, closing at ₹94.95 against the dollar, a two-month high.
Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, flagged that sectors such as aviation, paints, and tyres could “remain under pressure if crude stays elevated,” while “upstream energy producers and companies benefiting from stronger refining economics may continue to attract relative interest.”
Nifty 24,000 level remains key support
Technically, the 24,000 level on Nifty and the 57,000-57,200 band on Bank Nifty are being closely watched as key supports. Sachin Gupta of Choice Broking warned that “a decisive break and sustained move below this zone could drag Nifty towards 23,800 and 23,600,” while resistance remains firm at 24,200.