Indian equity markets came under heavy selling pressure on Wednesday morning as a fresh escalation in the Iran-US conflict rattled global markets and pushed crude oil prices sharply higher.
The BSE Sensex fell nearly 700 points within the first minute of trading, while the NSE Nifty dropped around 200 points. The sell-off came as investors reacted to renewed concerns over inflation, higher energy costs and the possibility of tighter monetary policy.
In pre-opening trade, the Sensex was down more than 540 points at 76,397.24, while the Nifty stood over 203 points lower at 23,852.05.
Sensex, Nifty open sharply lower
The selling was broad-based, with only Sunpharma among the 30 Sensex companies trading in positive territory during the opening moves.
The weak start followed a subdued session on Tuesday. The Sensex ended 12.99 points, or 0.02 per cent, lower at 76,944.28. During the session, it had fallen as much as 301.15 points, or 0.39 per cent, to 76,656.12.
The Nifty also closed lower on Tuesday, declining 24.60 points, or 0.10 per cent, to 24,055.80. It had slipped to 23,980.55 around 3:20 pm.
Brent crude jumps as conflict intensifies
The latest pressure on Indian equities came alongside a steep rise in oil prices. Brent crude climbed two per cent to $96.6 a barrel, reaching a near-six-week high after the US and Iran exchanged strikes overnight.
Higher crude prices have renewed concerns about inflation, particularly for economies that rely heavily on imported energy. The rise in oil prices also weighed on Asian markets and pushed global bond yields higher.
Investors are now watching the impact of the conflict on energy prices and global interest-rate expectations.
GIFT Nifty signals weak opening
Ahead of the market opening, GIFT Nifty futures were trading at 24,033.5 points at 7:38 am, pointing towards a weak start for the Nifty 50. The index had closed at 24,055.8 on Tuesday.
The renewed US-Iran confrontation has therefore added another layer of uncertainty for investors, with crude oil prices and inflation expected to remain key factors influencing market sentiment.