Indian stock markets witnessed sharp losses on Wednesday, with the Sensex tumbling nearly 1,000 points amid renewed geopolitical tensions in West Asia, rising crude oil prices and continued foreign fund outflows.
At around 11:15 am, the BSE Sensex was trading at 73,697, down almost 1,000 points from its previous close of 74,649.84.
The NSE Nifty also slipped sharply, falling 177.40 points to 23,302.50 in early trade.
Markets rattled by West Asia tensions
The latest market decline came after fresh Iranian missile strikes targeting Kuwait and Bahrain raised concerns over a possible escalation in the conflict involving Iran, the United States and Israel.
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According to reports cited by Hindustan Times, the missiles failed to hit their intended targets. US officials said the missiles aimed at Kuwait fell apart mid-air, while American and Bahraini defence systems intercepted those targeting Bahrain.
Investor sentiment also remained under pressure due to uncertainty surrounding ongoing US-Iran negotiations and fears that the fragile ceasefire in the region could collapse.
Rising crude prices add pressure
The renewed tensions pushed global crude oil prices higher, increasing concerns over India’s energy import bill and inflation outlook.
"The mild escalation in the West Asia conflict has again pushed up Brent crude price to close to USD 97 indicating no respite to India from the energy shock," PTI quoted VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, as saying.
Heavy selling was seen in IT and technology stocks during opening trade. Tata Consultancy Services, Tech Mahindra, Infosys, HCL Tech, ITC and Eternal were among the major laggards on the Sensex.
US trade proposal adds to worries
Market sentiment was also affected by a fresh proposal from the US Trade Representative (USTR), which has suggested imposing additional duties on imports from 54 countries, including India, over concerns related to forced labour-linked imports.
The proposed action follows investigations into countries that the USTR said failed to effectively enforce restrictions on goods produced using forced labour.
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The sharp decline came a day after markets had staged a recovery. On Tuesday, the Sensex had snapped a four-day losing streak and closed 382 points higher, helped by gains in IT shares. The Nifty had also ended the session in positive territory.
