Indian equity markets witnessed sharp selling pressure on Wednesday after renewed geopolitical tensions in West Asia triggered a spike in global crude oil prices, dampening investor sentiment across sectors.

The BSE Sensex plunged more than 625 points to trade around 77,600, while the NSE Nifty 50 declined nearly 150 points to 24,250 during early trade. Investors remained cautious after fresh US military strikes in Iran intensified concerns over energy supplies and global economic stability.

According to market data, heavy selling was witnessed in energy, banking and automobile stocks, with Asian Paints, ITC, IndiGo, Reliance Industries, Hindustan Unilever and Bajaj Finance emerging among the major losers.

Oil Prices Fuel Market Jitters

Investor sentiment weakened after crude oil prices climbed following reports that the United States carried out airstrikes on more than 80 military targets in southern Iran despite an existing ceasefire.

Washington said the operation was conducted in response to attacks on commercial vessels transiting the strategically important Strait of Hormuz. The renewed tensions pushed Brent crude close to $76 per barrel, raising concerns over inflationary pressures and increased import costs for oil-dependent economies such as India.

Higher crude prices generally weigh on Indian markets as they increase fuel import bills, pressure corporate margins, and may impact inflation and fiscal calculations.

Sectoral Indices Trade in Red

Selling pressure was visible across most sectoral indices on the National Stock Exchange.

Except for Nifty Healthcare and Nifty Pharma, all major sectoral indices traded lower during the session. Nifty Oil & Gas recorded the steepest decline, falling around 1.64%, reflecting investor concerns over rising energy costs and market volatility.

Banking, automobile, financial services and FMCG counters also remained under pressure throughout the morning session.

Asian Markets Show Mixed Trend

Asian markets presented a mixed picture amid the geopolitical uncertainty.

South Korea's KOSPI and Japan's Nikkei traded lower, while Hong Kong's Hang Seng Index bucked the trend with gains of more than 2%, supported by local buying interest.

The mixed performance reflected cautious investor sentiment across the region as markets assessed the potential impact of escalating tensions in the Middle East.

Wall Street Ends Lower

US equity markets had also ended Tuesday's session in negative territory.

The Dow Jones Industrial Average slipped 0.25%, while the technology-heavy Nasdaq Composite fell 1.16%. The S&P 500 also closed lower, indicating broader global risk aversion ahead of Wednesday's trading.

Foreign Investors Continue Buying

Despite the weak market sentiment, foreign institutional investors (FIIs) remained net buyers.

According to provisional exchange data, FIIs purchased Indian equities worth ₹393 crore on Tuesday, while domestic institutional investors (DIIs) were net sellers of approximately ₹384 crore.

Over the past week, FIIs have maintained positive inflows, although their overall investment for the previous month remains in negative territory.

Previous Session Also Weak

The decline follows a subdued trading session on Tuesday, when the Sensex closed 104 points lower at 78,181, while the Nifty ended 32 points lower at 24,399, indicating continued caution among investors amid global uncertainties.

With crude oil prices remaining elevated and geopolitical developments unfolding rapidly, market participants are expected to closely monitor international events, central bank signals and institutional investment flows for further direction.