Mumbai, March 4 The benchmark stock market indices, Sensex and Nifty, experienced significant losses on Wednesday, in line with the weak trend in Asian markets, as the conflict in West Asia intensified, driving up oil prices.
Continuing its sharp fall from the previous session, the 30-share BSE Sensex plunged by 1,795.65 points or 2.23%, closing at 78,443.20, due to the ongoing conflict and its impact on investor sentiment. The 50-share NSE Nifty fell by 560.3 points or 2.25%, closing at 24,305.40.
Among the Sensex stocks, Tata Steel, Larsen & Toubro, InterGlobe Aviation, UltraTech Cement, Maruti, and NTPC were among the biggest losers.
Infosys and Bharti Airtel were the gainers.
Brent crude, the global benchmark for oil, jumped by 2.54% to USD 83.54 per barrel.
Asian markets also experienced significant declines. The South Korean Kospi fell by over 12%. The Nikkei 225 in Japan, the SSE Composite index in Shanghai, and the Hang Seng index in Hong Kong were also trading at significantly lower levels.
The US market ended in negative territory on Tuesday.
The conflict in West Asia intensified as Iran continued to attack several Gulf countries in retaliation for the joint attack by Israel and the US. The US and Israel have also carried out fresh strikes on Iran.
"With the war escalating and crude oil prices rising, the markets are entering a period of heightened uncertainty. No one knows how long this conflict will last or what the extent of its impact will be. From India's perspective, which relies on imports for approximately 85% of its oil requirements, the real concern is the potential for inflation and its consequences on economic growth," VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said.
From a market perspective, the real issue is the potential widening trade deficit, depreciating currency, higher inflation, and potentially slower growth, he added.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,295.64 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 8,593.87 crore.
Equity markets were closed on Tuesday for Holi.
On Monday, the Sensex closed at 80,238.85, down 1,048.34 points or 1.29%. The Nifty settled down by 312.95 points or 1.24% at 24,865.70.
