Indian Markets Plunge as Crude Prices Soar and West Asia Tensions Rise
Indian markets opened sharply lower on Wednesday due to rising crude oil prices and uncertainty over a possible truce in West Asia. The BSE Sensex crashed more than 500 points, while the NSE Nifty50 slipped below 23,500. The GIFT Nifty pointed to a subdued start for Indian equities, with futures quoted at 23,657, down 97 points.
The negative indication came as investors remained concerned about elevated crude oil prices amid the absence of signs of a ceasefire in West Asia. Higher oil prices are particularly important for India given the country's dependence on crude imports. The September crude futures were quoted at $99.26, marginally lower by 0.05 per cent.
Asian equities largely moved higher in early Wednesday trade, supported by continued investor interest in artificial intelligence-related companies. However, this failed to lift domestic sentiment as investors remained focused on the geopolitical and oil-market risks. The sustained rise in crude prices remains a key risk for Indian equities, as a prolonged increase could put pressure on inflation, the current account, and corporate profitability.