The Indian benchmark indices crashed on Wednesday as the Sensex tumbled 1,663 points to close trade at 76,517 and the Nifty declined over 500 points to settle at 23,984 at 3:30 PM.
Previously, during the early morning session, the Sensex bled more than 350 points and tested 77,800, while the NSE Nifty50 breached 24,300, taking a hit of nearly 122 points, as of 9:15 AM.
Geopolitical Tensions Dent Investor Confidence
Investor sentiment turned cautious after tensions between the United States and Iran escalated once again.
According to reports, the US carried out retaliatory strikes against Iran and reimposed sanctions restricting Tehran's global crude oil sales. The military action came after Iran reportedly attacked three commercial vessels travelling through the US Navy-protected shipping corridor in the Strait of Hormuz.
The latest developments have renewed concerns over global energy supplies and heightened uncertainty across financial markets.
Asian Markets Open Lower
Most major Asia-Pacific equity markets traded in the red in early deals as investors reacted to the latest geopolitical developments.
Japan's Nikkei 225 fell around 0.5 per cent, while South Korea's Kospi declined nearly 0.8 per cent. The broad-based weakness reflected a risk-off mood amid rising tensions in West Asia.
Wall Street Closes Lower
US equities ended the previous session on a weaker note as investors reduced exposure to risk assets.
The Dow Jones Industrial Average and the S&P 500 posted moderate losses, while the technology-heavy Nasdaq Composite fell more than 1 per cent, weighed down by weakness in growth stocks.
Crude Oil Jumps Above $75 Per Barrel
Oil prices surged after the US military action and renewed sanctions on Iranian crude exports fuelled concerns over potential supply disruptions.
Brent crude futures gained around 3 per cent, with the July contract trading at approximately $75.78 per barrel during early Asian trade.
Higher crude prices remain a key concern for India, as they can stoke inflationary pressures, widen the current account deficit and weigh on corporate earnings.
Gold, Silver Retreat
Despite heightened geopolitical uncertainty, precious metals witnessed profit-booking.
Gold futures slipped nearly 1 per cent, while silver futures declined close to 2 per cent in early trade.
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