Indian benchmark shares fell on Wednesday after a surge in the previous session, as the Middle East war kept investors uncertain about the impact on inflation and growth, with oil prices also falling.
By afternoon, the 30-share S&P BSE Sensex was down 1.33% or 1,045.15 points, while the broader NSE Nifty 50 was trading 1.19% lower after an almost flat to positive start on Wednesday. Eight of the 16 major sectors declined, with HDFC Bank and ICICI Bank falling 1.4% each and Reliance Industries falling 0.48%.
Smallcaps rose 0.5% while midcaps were flat.
“There is still a lot of geopolitical uncertainty and that is why the markets are basically on edge,” Devarsh Vakil, head of research at HDFC Securities, told Reuters.
The United States and Israel launched what they described as the heaviest attacks of the war on Iran, although US President Donald Trump said on Monday the conflict “could soon be over”.
Meanwhile, a short-term slide in oil prices after The Wall Street Journal reported that the International Energy Agency has proposed a record release of oil reserves to curb crude oil prices, giving some relief to global stocks. The pullback helped the Sensex and Nifty 50 climb again on Tuesday after registering their biggest fall in a month in Monday’s session and ending near a one-year low.
Each benchmark has declined about 5% since the start of the Iran war.
“The news that the International Energy Agency may release emergency reserves will keep crude oil at lower levels and excite market participants,” Vakil said. Brent crude futures traded between gains and losses, down 1.4% at $86.64 a barrel.
Stocks in news today
- IndiGo (InterGlobe Aviation Ltd) gained up to 3% after CEO Peter Albers resigned.
- Wari Energies Ltd. rose 2.4% on a deal to acquire shares in United Solar Holdings worth $30 million.
