Sensex Suffers Sizable Loss, Nifty Falls Below 24,200 as Crude Prices Rise

Market Turmoil: Sensex, Nifty Trim Gains Amid Rising Crude Prices and Geopolitical Concerns

The Indian equity market indices, Sensex and Nifty, trimmed their gains on Wednesday due to profit booking and a rise in crude oil prices following reports that the US may extend its blockade of Iranian ports. The Sensex had surged 1,096 points or 1.42 percent to hit an intraday high of 77,982.51 in early trade, while the Nifty rose 339 points or 1.41 percent to 24,334.70.

However, the gains moderated later in the session as investors booked profits in financial, consumer durable, and midcap stocks. The Sensex was trading 717.24 points or 0.93 percent higher at 77,604.15, down 378.36 points from the day's high. The Nifty stood at 24,208.10, up 212.40 points or 0.89 percent, lower by 126.60 points from its peak.

Rising Crude Prices Weigh on Market

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Rising crude prices had a negative impact on the market. Brent crude futures for June delivery rose $2.97, or 2.7 percent, to $115 a barrel around 2 pm IST, extending gains for an eighth straight session. The rise follows a report by The Wall Street Journal that Donald Trump has asked aides to prepare for an extended blockade of Iran, aimed at curbing its oil exports. Higher crude prices are a concern for India, the world's third-largest oil importer, as they raise inflation risks and weigh on growth and corporate earnings.

Persistent FII Outflows and Geopolitical Concerns

Foreign institutional investors (FIIs) sold equities worth Rs 2,103.74 crore on Tuesday. So far this month, FIIs have pulled out about Rs 1.58 lakh crore from Indian equities, adding pressure on the markets. The report on a possible US blockade of Iran and recent remarks by Donald Trump on the Truth Social have further heightened geopolitical tensions, keeping investors cautious.

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Caution Ahead of Fed Outcome

Investors are cautious ahead of the US Federal Reserve's policy decision due later in the day. The outcome will be the final meeting chaired by Jerome Powell. While a pause in rates is largely expected, investors are watching for cues on inflation and the future rate path, which could influence global liquidity flows and, in turn, impact emerging markets like India.