Mumbai: Indian equity markets witnessed a sharp decline on Wednesday as rising geopolitical tensions in West Asia triggered volatility across global markets and pushed crude oil prices higher.
The benchmark BSE Sensex dropped 1,122.66 points, or 1.40 percent, to close at 79,116.19, marking its fourth consecutive session of losses. During intraday trade, the index had fallen as much as 1,795.65 points before recovering some ground in the later part of the session.
Similarly, the NSE Nifty 50 declined 385.20 points, or 1.55 percent, to settle at 24,480.50. The index recorded its lowest closing level in nearly six months and extended its losing streak for a third straight session.
Heavy selling was seen in several frontline stocks. Tata Steel emerged as the biggest laggard, falling nearly seven percent, followed by Larsen & Toubro, which dropped more than four percent. Shares of Bajaj Finance, UltraTech Cement, NTPC, InterGlobe Aviation, Bajaj Finserv and Kotak Mahindra Bank also ended the session in negative territory.
However, a few stocks provided limited support to the market, with Bharti Airtel, Infosys and Tech Mahindra among the gainers.
Market sentiment remained under pressure as crude oil prices surged amid the escalating conflict in West Asia. Brent crude, the global oil benchmark, rose over three percent to trade near USD 84 per barrel.
Weakness was also visible across Asian markets. Major indices in Japan, China, Hong Kong and South Korea ended the day lower, reflecting investor concerns over the widening geopolitical tensions and their potential impact on global energy supplies.
Meanwhile, foreign institutional investors continued to offload Indian equities, while domestic institutional investors remained net buyers in the market, according to exchange data.
Market analysts said geopolitical developments and fluctuations in energy prices are likely to keep investors cautious in the near term.
