Indian stock markets opened sharply lower on Wednesday as escalating military tensions between the United States and Iran triggered fresh concerns about inflation, crude oil prices and global economic stability.
The BSE Sensex fell nearly 700 points in the opening minutes, while the Nifty 50 dropped around 200 points. In pre-opening trade, the Sensex was down more than 540 points at 76,397.24, while the Nifty stood at 23,852.05, down over 203 points.
The sharp decline came after the United States and Iran exchanged strikes overnight, raising fears that the conflict in the Middle East could worsen. The developments have increased uncertainty across global financial markets and pushed investors towards safer assets.
Among the 30 Sensex companies, Sun Pharmaceutical Industries was the only stock trading in the green during the early session, highlighting the broad-based selling pressure across the market.
Crude oil prices also jumped sharply following the military escalation. Brent crude rose around 2 per cent to $96.60 a barrel, reaching a near six-week high. Higher oil prices are a concern for India because the country imports a large share of its crude requirements. A sustained rise in crude could increase inflationary pressure and put pressure on the country's trade balance.
The rise in oil prices also affected Asian markets, while global bond yields moved higher on expectations that the US Federal Reserve could delay interest-rate cuts or consider tighter policy if inflation remains elevated.
The negative trend was also signalled by GIFT Nifty futures, which were trading at around 24,033.5 points at 7:38 am on Wednesday. The Nifty had closed at 24,055.80 on Tuesday.
On Tuesday, the Sensex ended almost flat, falling 12.99 points, or 0.02 per cent, to 76,944.28. During the session, it had slipped as much as 301.15 points to 76,656.12.
The Nifty 50 declined 24.60 points, or 0.10 per cent, to finish at 24,055.80. It had also fallen to 23,980.55 during the afternoon session.
With geopolitical tensions intensifying and crude prices rising, investors are now closely watching developments in the Iran-US conflict. Any further escalation could continue to weigh on equities and increase volatility in Indian markets.
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