Punjab Newsline | New Delhi
Indian stock markets witnessed a sharp sell-off on Wednesday morning as escalating tensions in the Middle East rattled global investors and overshadowed India's strong economic growth figures.
Concerns over the intensifying US-Iran conflict and a surge in crude oil prices triggered widespread selling across sectors, dragging benchmark indices sharply lower.
The BSE Sensex plunged 788.52 points to 76,155.76 in early trade, while the NSE Nifty slipped 269 points to 23,786.80. The Indian rupee also weakened marginally by 2 paise against the US dollar, trading at 94.97.
Market experts attributed the decline to growing geopolitical uncertainty and fears of a prolonged rise in energy prices. Banking and market analyst Ajay Bagga said global markets have entered a “risk-off” phase, with investors moving towards safer assets amid mounting concerns over the Iran conflict.
Brent crude prices jumped nearly 5% overnight, touching around $96 per barrel, raising fears of higher inflation and increased costs for economies heavily dependent on oil imports. The spike in oil prices has also heightened concerns that central banks may keep interest rates elevated for longer.
Investors are closely monitoring policy decisions from the European Central Bank (ECB) and the Bank of Japan (BOJ), both of which are expected to consider interest rate hikes this month.
Analysts believe that despite India's strong GDP performance, global geopolitical risks and rising crude prices could keep market sentiment under pressure in the coming days.
