Indian stock markets began Wednesday’s trading session on a weak note, with the Sensex and Nifty declining sharply as investors reacted to worsening global sentiment, higher crude oil prices and renewed escalation in the US-Iran conflict.
The BSE Sensex fell 472.96 points, or 0.61%, to open at 76,471.32, compared with its previous close of 76,944.28. The Nifty 50 also came under pressure, opening 196.60 points lower at 23,859.20, against Tuesday’s close of 24,055.80.
Selling pressure was visible beyond the benchmark indices, with broader market indicators also trading in negative territory during early deals.
The BSE Midcap Select Index declined by 191.17 points, while the BSE Smallcap Select Index dropped 95.48 points, or 1.04%, to 9,117.94.
Market breadth on the NSE was also tilted towards sellers. In early trading, 2,180 stocks were in the red, while 1,336 stocks advanced and 132 remained unchanged.
What was the signal from Gift Nifty?
Gift Nifty had already pointed towards a cautious opening for domestic equities. The index opened around 25 points lower at 24,026, compared with its previous close of 24,051.
Despite the weak start, institutional buying offered some support to the market in the previous session. Foreign Institutional Investors (FIIs) turned buyers on September 1, purchasing Indian equities worth ₹1,143.38 crore after two consecutive sessions of selling.
Domestic Institutional Investors (DIIs) also continued their buying activity, investing ₹1,846.94 crore in equities.
Hariselvan Radhakrishnan, Founder and CEO of HST Wealth, said foreign investors had returned as net buyers while domestic institutions continued to provide support at lower levels. He also pointed to the rupee’s recent strengthening and India’s latest 7.8% GDP growth as factors supporting the domestic economic outlook.
Asian markets under pressure
Indian equities were not alone in facing selling pressure. Major Asian markets also opened lower after US equities ended broadly weaker amid heightened geopolitical concerns.
Fresh US military strikes on Iran pushed crude oil prices higher, raising concerns that prolonged geopolitical tensions could fuel inflation and affect global economic growth.
Japan’s Nikkei 225 was down 1,837.34 points, or 2.77%, at 64,378. Hong Kong’s Hang Seng Index declined 294.73 points, or 1.16%.
South Korea’s Kospi dropped 231.88 points, or 3.39%, while China’s Shanghai SSE Composite Index fell 32.63 points, or 0.83%.
The rise in crude prices remains a key concern for oil-importing economies such as India, as sustained increases could put pressure on inflation, the rupee and corporate costs.
