Mumbai: Both Nifty50 and BSE Sensex, the Indian equity benchmark indices, crashed in trade on Wednesday as fresh tensions between the US and Iran sent crude oil prices soaring. Both the benchmarks tumbled around 2%.
Fears of further escalation in the Middle East were reignited after Trump declared that the interim agreement with Iran to end the conflict was “over”. Selling pressure gathered pace during the second half after this announcement, The Times of India reported.
Nearly Rs 8 lakh crore in investor wealth was wiped out du
e to the sharp market decline, pulling the combined market capitalisation of all companies listed on the BSE to Rs 471 lakh crore.
Selling was broad-based across sectors, with the Nifty Bank, Nifty FMCG and Nifty Oil & Gas indices each dropping more than 2%.
Investor sentiment turned sharply negative, even as crude oil prices rallied sharply amid fears of further supply disruptions through the Strait of Hormuz. Brent crude futures climbed nearly 5% to $78.09 a barrel.
European stocks came under heavy selling pressure following Trump’s remarks, with the UK’s FTSE 100, France’s CAC 40 and Germany’s DAX declining by as much as 2%. Asian markets also ended sharply lower. Japan’s Nikkei lost 1.5%, while South Korea’s Kospi tumbled 6% amid an intensified selloff in semiconductor stocks.
US markets also appeared headed for another weak session. After Wall Street’s steep overnight decline, Dow Jones futures were down about 1%, pointing to a subdued opening later in the day.
The Indian rupee weakened beyond the 95.50 mark against the US dollar, declining 0.6% from its previous close as rising crude oil prices and a stronger US currency weighed on the domestic unit.