Sensex Declines Sharply, Nifty Tumbles Near 23,850 Amid Global Market Volatility

Equity Indices Slide Amid West Asia Conflict Worries

The benchmark equity indices Sensex and Nifty traded lower in Wednesday's trade, weighed down by concerns over the escalating conflict in West Asia.

The Sensex plummeted by 166 points or 0.22 percent to 75,843.70 at around 9:45 a.m., while the broader Nifty declined to 23,873.95, down 39.75 points or 0.17 percent.

The ongoing conflict in West Asia continues to pose a significant challenge to peace efforts. On Tuesday, Iran accused the United States of violating a ceasefire by striking targets near the contested Strait of Hormuz, potentially complicating efforts to bring the three-month-old war to a close. Furthermore, Israel pounded Lebanon with more than 120 air strikes on Tuesday, marking one of the heaviest days of bombing in weeks. Iran has sought an end to Israeli attacks in Lebanon as part of any deal.

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The monthly expiry of BSE derivatives contracts on Wednesday also contributed to the cautious trading mood, as markets are set to shut on Thursday due to Bakri Id. Derivatives expiry typically leads to increased volatility due to the rollover and unwinding of positions.

The Indian rupee also felt the impact of the West Asia conflict, slipping 8 paise to 95.78 against the US dollar on elevated crude oil prices. The rupee had opened on a positive note at 95.60, but soon pared the gains and fell to 95.78 against the American currency, registering a fall of 8 paise from its previous close.