Indian equity markets opened lower on Wednesday as renewed US-Iran tensions pushed Brent crude above $76 per barrel, sparking concerns over inflation and economic growth.
The BSE Sensex fell 535.44 points, or 0.68%, to 77,645.28, while the NSE Nifty50 declined 158.45 points, or 0.65%, to 24,241.
Brent crude surged over 2% after US military strikes against Iran, raising fears of supply disruptions. Analysts warned that higher crude prices could increase India’s import bill, fuel inflation, and weigh on growth. Dr VK Vijayakumar of Geojit Investments said the market has returned to “uncertain territory” due to geopolitical risks.
Selling was broad-based, with major stocks in red. IndiGo dropped 2.47%, Asian Paints fell 2.12%, and Reliance lost 2.08%. Maruti Suzuki, M&M, Bajaj Finance, and UltraTech Cement also declined. Defensive sectors showed resilience, with Sun Pharma rising 1.02%, HCLTech gaining 0.57%, and Infosys up 0.31%. Nifty Pharma advanced 0.89%, while healthcare indices also posted gains.
The rupee weakened 0.2% to 95.1725 against the US dollar. India VIX jumped 7.01%, signalling heightened volatility. Broader indices mirrored the weakness, with Nifty 100, 200, and 500 all trading lower.
Foreign institutional investors (FIIs) remained net buyers, purchasing equities worth Rs 1,991 crore over the past three days. Vijayakumar noted that India’s relative stability continues to attract FIIs, though further escalation in tensions could reverse this trend.
