- Big fall in Nifty-Sensex
- Indian stock market on red target
- 3 lakh crore loss of investors
Share Market Closed: Indian stock market benchmarks closed lower on Wednesday, after a sharp rise in crude oil prices in the international market due to rising tensions in the Middle East, again falling after a day’s worth of gains. At the close of trade, the BSE Sensex closed down 1.72 percent or 1,342.27 points at 76,863.71. The NSE Nifty 50 closed down 1.63 percent or 394.75 points at 23,866.85.
In the broader market, the Nifty Midcap index fell by 1.25 percent and the Nifty Smallcap index by 0.36 percent. Sectorally, Nifty Auto emerged as the worst performing sectoral index, falling over 3 percent. Nifty Financial Services and Nifty Private Bank also underperformed.
Iran-Israel War: Middle East Tensions Rise; Iran warns of targeting banks and financial centers
In contrast, Nifty Pharma was the highest gainer among the sectoral indices. Nifty Oil & Gas and Nifty Healthcare indices also closed higher. Investors remained cautious in Wednesday’s trading session, with both the Sensex and Nifty falling over 1.5 percent. Shares in the banking, financial services and auto sectors were particularly prominent contributors to the fall. In intraday trade, the Sensex fell 1,396 points to hit a low of 76,810.14, while the Nifty 50 fell nearly 407 points to 23,854.35. Midcap and smallcap indices also fell by over 1.5 percent.
The fall in this market took a huge toll on investors’ wealth. The total market capitalization of BSE-listed companies fell to around Rs 442 lakh crore from Rs 447 lakh crore in the previous session, indicating a loss of Rs 3 lakh crore to investors in a single day. In incidents related to the US-Iran war, three ships off the coast of Iran were reported to have been attacked by missile-like projectiles. One of the ships caught fire, forcing the crew to evacuate. This incident further increased uncertainty in global markets. At one point, Brent crude prices rose 5.8 percent to 92.96 a barrel on the Intercontinental Exchange.
Suez Canal Crisis: Iran’s eyes on the Suez Canal? Alarm bells for world trade
As for global markets, oil prices rebounded after reports of ship attacks amid ongoing military operations in the Middle East. After falling about 11 percent in the previous session, Brent crude rose about 1.8 percent to near 90 a barrel. The British Navy reported on Wednesday that three ships had been attacked in the Strait of Hormuz and the Persian Gulf, raising fears of disruption to maritime trade routes. Experts say fluctuating oil prices and war-related uncertainty will continue to affect global financial markets, as a protracted conflict could affect global supplies of oil and natural gas.
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