Indian equity benchmarks ended sharply lower on Wednesday, with the BSE Sensex plunging 715 points and the NSE Nifty 50 slipping below the psychologically important 24,000 mark. Weakness in banking and information technology (IT) stocks, coupled with rising crude oil prices and global geopolitical concerns, kept investors on the sidelines throughout the trading session.

The Sensex closed below the 77,000 level, while the Nifty settled at 23,996.25, down 191.45 points, marking a decline of nearly one percent.

Banking and IT Stocks Drag Markets

Selling pressure remained concentrated in banking and IT counters, making them the biggest drags on the benchmark indices.

On the National Stock Exchange (NSE), almost all sectoral indices ended in the red. The only major exception was Nifty Auto, which managed to close with modest gains.

Among broader market indices, the Nifty Mid-Small Healthcare Index emerged as the worst-performing sector, declining nearly 2%, reflecting widespread selling across mid- and small-cap healthcare stocks.

Market participants attributed the weakness to profit booking after recent gains, rising global uncertainty and caution ahead of key economic developments.

Crude Oil Hits Five-Week High

Global crude oil prices added to investor concerns after Brent crude climbed to around $92 per barrel, its highest level in five weeks.

The sharp rise follows escalating geopolitical tensions between the United States and Iran, raising fears of possible supply disruptions in global energy markets.

Higher crude prices are closely watched in India, as the country imports the majority of its oil requirements. Sustained increases in oil prices can widen the trade deficit, fuel inflation and put pressure on corporate earnings.

Asian Markets Deliver Mixed Performance

Asian markets ended on a mixed note on Wednesday.

South Korea's KOSPI emerged as the strongest performer, gaining nearly 4.7%, while Japan's Nikkei advanced almost 2%.

However, Hong Kong's Hang Seng Index ended lower, reflecting cautious sentiment in parts of the Asian market.

Wall Street Ends Higher

Despite weakness in Indian equities, US markets closed in positive territory overnight.

The Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 all registered gains, supported by strong technology stocks and optimism over corporate earnings.

Global investors, however, remain focused on geopolitical developments and their potential impact on inflation and interest rates.

Institutional Investor Activity

Foreign Institutional Investors (FIIs) were net buyers of ₹1,650 crore during Wednesday's session, providing some support to the market.

Over the past seven trading sessions:

• Domestic Institutional Investors (DIIs) have recorded net purchases worth ₹4,660 crore.
• FIIs, however, continue to remain net sellers over the past month, reflecting cautious foreign investment flows into Indian equities.

Rupee Weakens Against Dollar

The Indian rupee weakened by 11 paise to close at 96.36 against the US dollar.

Currency analysts said the depreciation was driven by higher crude oil prices, sustained demand for the dollar and global risk aversion.

Markets Extend Previous Day's Losses

Wednesday's decline follows losses recorded in the previous session.

On July 21, the Sensex had fallen 238 points to settle at 77,470, while the Nifty declined 51 points to close at 24,188.

With concerns over rising oil prices, global geopolitical tensions and sector-specific selling continuing to dominate sentiment, market participants are expected to remain cautious in the coming sessions while closely tracking global developments, institutional investment trends and upcoming corporate earnings.