Sensex Tumbles 813 Points To 3-Month Low As $100 Oil, West Asia Tensions Rattle Markets

Indian stock markets came under intense selling pressure on Wednesday, with the Sensex tumbling 813 points to a three-month low as escalating tensions in West Asia sent crude oil prices above USD 100 a barrel and heightened fears over inflation and economic stability.

The 30-share BSE Sensex plunged 813.35 points, or 1.08 per cent, to close at its day's low of 74,764.23. The benchmark has now fallen for three consecutive sessions and ended at its lowest closing level since June 11. The Nifty 50 also declined 203.60 points, or 0.86 per cent, to settle at 23,431.50, also its lowest level since June 11.

The sell-off was particularly sharp in technology stocks. HCL Technologies fell 4.55 per cent, making it the biggest loser among Sensex constituents. Infosys, Tech Mahindra and Tata Consultancy Services also came under pressure, while HDFC Bank and Hindustan Unilever were among the other major laggards.

However, some stocks bucked the broader trend. Adani Ports, Tata Steel, Trent and NTPC ended higher.

The biggest concern for investors was the sharp rise in crude prices. Brent crude jumped 2.67 per cent to USD 100.50 a barrel, its highest level in more than three months, as the conflict in West Asia intensified. Higher oil prices are a concern for India because they can increase import costs and add pressure on inflation and the country's external balances.

“Persistent selling pressure and a broad risk-off mood kept sentiment subdued,” Ponmudi R, CEO of Enrich Money, said, pointing to elevated crude prices, geopolitical tensions and rising market volatility.

The India VIX climbed more than 6 per cent, reflecting growing investor caution and increased hedging activity.

Foreign fund flows added to the pressure. Foreign Institutional Investors sold equities worth Rs 123.19 crore on Tuesday, according to exchange data.

Global markets also remained uneasy. Japan's Nikkei 225 and Hong Kong's Hang Seng ended lower, while European markets were trading in negative territory. US markets had also closed lower on Tuesday.

The latest fall follows Tuesday's 555.23-point decline in the Sensex, highlighting how quickly geopolitical risks and the oil shock have intensified pressure on Dalal Street.