Sensex Plunges 711 Points, Nifty Falls 240 as Crude Oil Surges Amid US-Iran Tensions

New Delhi, September 2: Indian equity markets came under heavy selling pressure on Wednesday, with the benchmark Sensex falling more than 700 points and the Nifty declining over 230 points in early trade.

The sell-off was triggered mainly by renewed geopolitical tensions between the United States and Iran and a sharp rise in crude oil prices, which again moved towards the $100-per-barrel mark. Investors remained cautious amid concerns that higher oil prices could increase inflationary pressures and affect corporate earnings.

At around 9:30 am, the BSE Sensex was down 711 points, or 0.91%, at 76,232, while the Nifty 50 declined 234.90 points, or 0.98%, to 23,820.90. The Sensex had opened about 600 points lower, while the Nifty slipped towards the 23,900 level.

Broad-Based Selling

Market breadth was weak, reflecting widespread selling pressure. At the time, around 1,555 stocks were trading lower, compared with about 803 stocks that were advancing.

Asian markets also witnessed significant declines. South Korea’s KOSPI fell nearly 3%, while Japan’s Nikkei dropped around 2.91%. Taiwan’s benchmark declined 0.91%, Shanghai fell 0.75% and Hong Kong’s Hang Seng index was down 0.65%.

Crude Oil and Geopolitical Risks Weigh on Sentiment

The renewed rise in crude oil prices has emerged as a major concern for investors. India, being a major crude oil importer, remains particularly sensitive to fluctuations in international oil prices. A sustained rise in crude prices could put pressure on inflation, the rupee and corporate profitability.

The latest market movement therefore reflects a combination of geopolitical uncertainty, higher crude prices and weak global market cues, prompting investors to reduce exposure to equities in early trading.