Markets Tumble as US-Iran Tensions Escalate

Indian equity markets witnessed a sharp sell-off on Wednesday after renewed geopolitical tensions between the United States and Iran rattled global investors. The benchmark Sensex plunged 1,677.12 points to close at 76,503.60, while the Nifty 50 fell 516.65 points to settle at 23,882.05. Rising crude oil prices, following fresh US sanctions on Iranian oil and renewed military tensions, dampened investor sentiment. Brent crude surged above $78 per barrel, while the Indian rupee weakened by 52 paise against the US dollar. Foreign Institutional Investors (FIIs) purchased equities worth ₹1,962.80 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹790.16 crore.

Selling pressure was broad-based, with all 30 Sensex stocks ending in the red. Aviation, oil marketing, banking, FMCG, and paint stocks recorded significant declines as higher crude prices raised concerns over input costs and profitability. Meanwhile, the market capitalization of BSE-listed companies declined by nearly ₹8.96 lakh crore. In contrast, packaging solutions company Knock Packaging Ltd. made a positive stock market debut, listing at a premium of 9.41% over its issue price before closing with a gain of 7.47%. Gold and silver prices also declined amid a stronger US dollar and rising bond yields.