India’s volatility gauge, the India VIX, surged 28.61 percent to 14.98, signalling a sharp jump in fear across markets as the fallout from Donald Trump’s declaration that the Iran ceasefire is over continued to ripple through Indian equities and commodities on Wednesday.
The Nifty 50 fell 2.09 percent to 23,889.85, while the broader Nifty index slipped 2.07 percent to 23,934.60. The Sensex declined 1.59 percent to 76,934.23. Banking stocks bore the brunt of the selloff, with Bank Nifty down 2.34 percent to 56,840.90, Bank Nifty futures down 2.34 percent to 57,030, Nifty Private Bank down 2.30 percent to 27,654.90, and the Nifty Financial Services index down 2.40 percent to 26,336.80.
Broader market indices fell even harder than the benchmarks, reflecting a sharper risk-off move in mid and small caps. The Nifty Smallcap 250 dropped 2.02 percent to 17,590.60, the CNX Smallcap index fell 2.24 percent to 18,783.35, and the Nifty Microcap 250 declined 1.85 percent to 24,726.50. Midcap indices also slid, with the Nifty Midcap Select down 1.63 percent, the CNX Midcap down 1.70 percent, Midcap Nifty futures down 1.82 percent, and the Nifty Midsmallcap 400 down 1.84 percent. The Nifty Next 50, tracked as Niftyjr, fell 1.81 percent to 70,937.75.
While equities sold off sharply, commodities surged in the opposite direction. MCX crude oil futures jumped 6.58 percent to Rs 7,146, having already touched its 6 percent upper circuit earlier in the session. Global benchmarks moved in tandem, with Brent crude up 3.74 percent at $78.155 a barrel and WTI, tracked as USOIL, up 3.35 percent at $74.61. The dollar index, DXY, was little changed, down a marginal 0.02 percent at 101.097.
The across-the-board moves, sharp equity declines paired with a surging VIX and rallying crude, reflect a classic risk-off pattern as markets price in the possibility of renewed hostilities between the US and Iran disrupting oil supply routes through the Strait of Hormuz, after Trump called Iranian forces “dirty players” and “scum” and said the US had struck Iran “very powerfully” overnight.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Please consult a certified financial advisor before making any investment decisions. Stock market investments are subject to market risks.
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