MUMBAI: Equity benchmark indices slumped over 2% on Wednesday, logging their sharpest single-day fall in over two months, after US President Donald Trump said the interim agreement with Iran was “over”.The statement, following attacks on commercial vessels in the Strait of Hormuz, triggered a 7% surge in crude oil prices to $79.1 per barrel, sparking a broad risk-off sentiment across global markets.Sensex tanked 1,677 points, or 2.2%, to close at 76,504, after plunging 1,922 points, or 2.5%, to an intraday low of 76,259. The Nifty 50 fell 517 points, or 2.1%, to settle at 23,882. The market sell-off wiped out over Rs 5.8 lakh crore in investor wealth.Selling was broad-based, with 3,211 stocks declining against 1,070 advances on the BSE. All sensex constituents ended in the red, with InterGlobe Aviation (Indigo), Maruti, Hindustan Unilever, Bajaj Finance, Kotak Mahindra Bank and Mahindra & Mahindra among the top losers.Mid- and small-cap stocks also came under pressure, with the BSE midcap index falling 2.1% and the smallcap index declining 1.6%. Sectorally, all indices ended lower, led by services (down 3.2%), followed by PSU banks (2.8%), FMCG (2.5%) and financial services (around 2.5%).Global cues remained weak, with South Korea’s Kospi falling 5.4% and Japan’s Nikkei 225 declining 2.1%. European markets were trading lower, while in the US, Dow Jones was down over 1%, reaching 52,385. Hong Kong’s Hang Seng, however, rose 3%.“Selling pressure intensified around 2 pm following US President Donald Trump’s remarks,” said Nandish Shah, deputy vice-president at HDFC Securities.“Indian equities are likely to remain volatile in the near term. Developments have significantly heightened geopolitical uncertainty, with the India VIX surging nearly 30% to a three-week high. The escalation has renewed concerns over global energy supplies, pushing Brent crude above $79 per barrel, and is likely to keep sentiment fragile until clarity emerges,” said Siddhartha Khemka, head of research, Motilal Oswal Financial Services.Rupak De, senior analyst at LKP Securities, said 56,535 would be a crucial support level to watch. “A decisive break below this level could confirm the onset of a short-term downtrend and lead to further weakness.” However, if the index holds above this support, a meaningful recovery is likely in the near term,” he said.
