The domestic equity benchmarks ended sharply lower on Wednesday as investors turned risk-averse amid escalating geopolitical tensions and a sharp surge in crude oil prices. The ongoing conflict involving the United States, Israel and Iran unsettled global markets, while the reported closure of the Strait of Hormuz pushed oil prices higher, raising concerns over inflation and energy costs. Sentiment was further dented by heavy selling from foreign institutional investors and the rupee slipping to a record low. Against this backdrop, the Nifty closed below the 24,500 mark. Barring the Nifty IT index, all other sectoral indices on the NSE ended in the red, with metal, PSU bank and oil & gas stocks leading the decline.
The S&P BSE Sensex tanked 1,122.66 points or 1.40% to 79,116.19. The Nifty 50 index dropped 385.20 points or 1.55% to 24,480.50.
Tata Steel (down 6.76%), Larsen & Toubro (down 4.53%) and HDFC Bank (down 1.51%) were major index drags today.
The broader market underperformed the key equity indices. The S&P BSE Mid-Cap index tumbled 2.26% and the S&P BSE Small-Cap index slumped 2.24%.
The market breadth was weak. On the BSE, 1,025 shares rose and 3,295 shares fell. A total of 125 shares were unchanged.
The NSE’s India VIX, a gauge of the market’s expectation of volatility over the near term, surged 23.40% to 21.14.
Economy:
Indias HSBC Services PMI eased to 58.1 in February from 58.4 in January and came in below the flash estimate of 58.4. New business growth slowed to its weakest pace since January 2025, while input cost inflation climbed to a two-and-a-half-year high amid higher food, energy and labour expenses. International sales expanded at the fastest pace since August. Employment increased for the second consecutive month, with hiring accelerating from January, while business confidence improved to a one-year high. Meanwhile, the HSBC Composite PMI rose to 58.9 in February from 58.4 in January, marking a three-month high.
US-Israel-Iran war enters Day 5:
The war involving the United States, Israel and Iran entered its fifth day as military actions intensified and regional tensions escalated. Israeli and U.S. forces have continued air and missile strikes on Iranian military infrastructure, while Iran has responded with retaliatory drone and missile attacks on regional and U.S. positions.
The conflict deepened following the reported death of Irans long-time Supreme Leader Ayatollah Ali Khamenei. According to reports, the clerical Assembly of Experts has elected his son, Mojtaba Khamenei, as the countrys new Supreme Leader, a controversial development that has drawn global attention and raised the stakes in the confrontation. The ongoing hostilities and uncertainty surrounding Irans leadership transition have unsettled global markets and heightened concerns over regional stability and energy supplies.
Numbers to Track:
In the commodities market, Brent crude for May 2026 settlement surged $2.01 or 2.47% to $83.41 a barrel amid escalating geopolitical tensions in the Middle East and concerns over potential disruptions to oil supply.
The yield on India’s 10-year benchmark federal paper added 0.57% to 6.718 compared with previous session close of 6.680.
In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 92.1400 compared with its close of 91.4925 during the previous trading session.
MCX Gold futures for 2 April 2026 settlement rose 1.69% to Rs 163,740.
The US Dollar Index (DXY), which tracks the greenback’s value against a basket of currencies, was down 0.32% to 98.74.
The United States 10-year bond yield rose 0.49% to 4.076.
Global Market:
European equities advanced on Wednesday after data showed that the euro areas seasonally adjusted unemployment rate was 6.1%, down from 6.2% in December 2025 and from 6.3% in January 2025.
Asian indices tumbled on Wednesday, led by steep losses in South Korea, as the war in the Middle East continued to unsettle investors.
South Koreas Kospi plunged 12%, marking its worst day since August 2024 and extending the sharp sell-off from the previous session. The Korea Exchange temporarily halted trading in the Kospi index, while a circuit breaker was also triggered on the Kosdaq after it fell more than 8%.
Geopolitical tensions escalated after a senior commander of Irans Revolutionary Guard reportedly said that the Strait of Hormuz had been shut and warned that any vessel attempting to pass through the key waterway would be targeted, according to Iranian media reports.
U.S. President Donald Trump reportedly said on Tuesday that the U.S. Navy would escort oil tankers through the Strait of Hormuz if required.
Investors are also closely watching China, where policymakers are set to begin the annual parliamentary meetings known as the Two Sessions. The consultative congress begins later on Wednesday, while the National Peoples Congress will open on Thursday. Chinese Premier Li Qiang is expected to announce key economic targets during the meeting.
Meanwhile, Chinas factory activity weakened in February as production and shipments slowed during the extended holiday period. The official manufacturing purchasing managers index fell to 49 in February, according to data from the National Bureau of Statistics, below the widely reported forecast of 49.1.
Overnight in the United States, equities ended lower as concerns about a prolonged U.S.-Iran conflict weighed on sentiment. The Dow Jones Industrial Average declined 403.51 points, or 0.83%, to close at 48,501.27. The S&P 500 fell 0.94% to 6,816.63, while the Nasdaq Composite dropped 1.02% to 22,516.69.
New Listing:
Shares of PNGS Reva Diamond Jewellery ended at Rs 413.95 on the BSE, representing a premium of 7.24% as compared with the issue price of Rs 386.
The stock debuted at Rs 372, marking a premium of 11.27% to the issue price. The stock has hit a high of Rs 433.55 and a low of Rs 359.60. On the BSE, over 2.39 lakh shares of the company were traded in the counter.
Stocks in Spotlight:
Bharat Coking Coal rose 4.36% after the company announced that Rajesh Kumar (Director Finance) has been appointed as Chief Financial Officer (CFO) with immediate effect, replacing M.S. Raju, GM (Finance).
Larsen & Toubro fell 4.53% as escalating Middle East tensions raised concerns over project execution risks.
Shares of sugar companies advanced on Wednesday as rising crude oil prices triggered optimism around higher ethanol production and tighter global sugar supply. Bajaj Hindusthan Sugar jumped 11.60%, while Dwarikesh Sugar Industries gained 9.03%. Shree Renuka Sugars rose 7.79% and Rajshree Sugars & Chemicals added 7.73%. Avadh Sugar & Energy climbed 4.59% and Uttam Sugar Mills advanced 4.31%. Praj Industries gained 3.91%, Dhampur Sugar Mills rose 3.37%, while Triveni Engineering & Industries edged up 0.20%.
Aurobindo Pharma fell 1.34%. The company informed that its wholly-owned subsidiary, Eugia Pharma Specialities, has launched Pomalidomide Capsules in strengths of 1 mg, 2 mg, 3 mg, and 4 mg in the U.S. market.
A B Infrabuild shed 1.87%. The company received an order worth Rs 62.94 crore from the National Highways Authority of India for constructing three vehicular underpasses along with approach roads on the PuintolaIcchapuram stretch of NH-16 in Odisha.
MRF fell 2.85%. The company entered into a non-binding memorandum of understanding (MoU) with Guidance Tamil Nadu, a nodal agency of the Government of Tamil Nadu, to set up a manufacturing facility for tires and allied products at SIPCOT Industrial Park.
Gland Pharma declined 4.77%. The company announced that it has received tentative approval from the U.S. Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Brimonidine Tartrate Ophthalmic Solution, 0.025% (OTC).
Natco Pharma shed 0.38%. The company, along with its partner Breckenridge Pharmaceutical Inc., launched Pomalidomide Capsules, a generic version of Celgenes Pomalyst, in the U.S. market.
Silver Touch Technologies fell 4.19%. The company said that it has secured a project for designing and developing the website and digital platform for the Centre for Integrative Medicine & Research (CIMR) at AIIMS New Delhi.
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