Sensex crashes 1,600 pts, Nifty falls 2% to below 24,400 at open as oil soars, Middle East war jolts markets

Share Market Today: Sensex, Nifty Update

• Sensex plunges 1,677 points, Nifty drops below 24,500 mark
• Rising crude oil and Middle East conflict trigger market sell-off
• Nifty Infra, Auto, and Consumer Durables sectors hit hardest

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Indian benchmark indices Sensex and Nifty opened sharply lower on Wednesday, extending the recent sell-off as escalating conflict in the Middle East and surging crude oil prices rattled global markets and intensified risk aversion.

At 09:16 am, the Sensex plunged 1,677 points or 2.1 percent to 78,561.8, while the Nifty dropped 494 points to 24,371.6, slipping well below the 24,500 psychological mark. Market breadth remained weak, with 2,203 stocks declining against 494 advances on the NSE.

Volatility spiked sharply, with India VIX rising nearly 14 percent to 19.51, reflecting heightened uncertainty as traders reacted to geopolitical risks and rising energy prices.

Global turmoil weighs on sentiment

The sharp fall in Indian equities mirrors weakness across global markets as investors grapple with the potential economic fallout of a widening conflict involving the US, Israel and Iran.

• Also read | India faces current account, inflation risks as global brokerages assess impact of US-Israel-Iran conflict

Asian equities extended losses for a third straight session, with Japan’s Topix tumbling over 4 percent and Hong Kong’s Hang Seng dropping more than 2 percent. US markets had also ended lower overnight, with the Dow Jones falling 403 points, the S&P 500 declining 0.9 percent and the Nasdaq sliding 1 percent.

Oil prices have emerged as the central market driver, with Brent crude trading near $81-82 per barrel amid fears of supply disruptions through the Strait of Hormuz -- a critical shipping route for global energy flows.

Oil shock raises macro concerns for India

Analysts say rising crude poses significant macroeconomic risks for India, which imports roughly 85 percent of its oil requirements.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the biggest concern for markets is the potential economic fallout if the conflict persists. “With the war escalating and crude rising, markets are entering a period of heightened uncertainty. For India, the real concern is the potential inflation and its consequences for economic growth,” he said. He warned that higher oil prices could widen the trade deficit, weaken the currency and pressure corporate earnings if the conflict drags on.

Heavyweight stocks drag benchmark indices

Selling pressure was widespread across sectors in early trade. Larsen & Toubro stock emerged as the top Nifty loser, plunging nearly 7 percent, while InterGlobe Aviation dropped over 3.5 percent.

Financial heavyweights also came under pressure, with HDFC Bank, Bajaj Finance and Shriram Finance shares declining between 2-3 percent. Infrastructure-linked stocks such as Adani Ports and Adani Enterprises also traded lower.

On the positive side, Bharat Electronics, Infosys and ONGC were among the few stocks trading in the green.

Sectorally, Nifty Infra, Auto and Consumer Durables were among the worst hit, while Nifty IT showed relative resilience, trading marginally higher.

Key Nifty levels to watch

Technically, analysts say the market structure remains weak after the Nifty slipped below the 25,000 resistance zone, which now acts as a ceiling for any recovery. According to technical analysts, 24,400-24,300 is emerging as a crucial near-term support band, while resistance is seen around 24,900-25,000.

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