Winning Bizness Desk

Mumbai. Indian equity benchmarks Sensex and Nifty closed lower for the second straight day on Wednesday as heightened geopolitical tension between Israel and Iran weighed on global sentiment. The BSE Sensex ended 138.64 points down at 81,444.66, while the NSE Nifty lost 41.35 points to close at 24,812.05. Broader indices too witnessed weakness with the BSE MidCap and SmallCap indices dipping by 0.34% each..

FMCG, IT and Financial stocks under pressure

Losses were led by heavyweights across sectors such as FMCG, IT, and financial services. Stocks like TCS, Adani Ports, HUL, Bajaj Finserv, NTPC, ICICI Bank, Tata Motors, and LT dragged the benchmark index lower. The sell-off reflected investor nervousness ahead of global developments and domestic valuation concerns.

Nifty Media, IT among worst hit

At the sectoral level, the Nifty Media index emerged as the biggest laggard, ending 1.27% down, followed by IT and Metal sectors. The drop in technology stocks mirrored a similar weakness seen in US tech shares overnight. Sentiment remained tepid with little optimism for a short-term turnaround.

Oil prices jump as Israel-Iran conflict flares

A major driver of the market’s cautious tone has been the sharp spike in global crude oil prices. Brent Crude jumped over $5 per barrel since last Friday, when Israel launched a direct strike on Iranian targets. By Wednesday, the benchmark crude hovered at $75.70 per barrel, triggering fears of a supply disruption and inflationary push globally.

Trump turns up the heat on Tehran

Adding to the volatility, former US President Donald Trump made strong remarks calling for Iran’s “unconditional surrender,” further fueling tensions. His statement came amid rising fears of broader Middle East instability, sending shockwaves through both political and financial corridors.

Wall Street suffers sharp fall

The global spillover was evident in US markets where all three major indices suffered notable losses on Tuesday. The S\&P 500 fell 0.8% to 5,982.72, Dow Jones slipped 0.7% to 42,215.80, and the tech-heavy Nasdaq shed 0.9% to close at 19,521.09. Elevated oil prices and geopolitical jitters spooked investors across the Atlantic.

All eyes on US Fed rate stance

Investors are also bracing for the outcome of the US Federal Reserve’s crucial two-day policy meeting, set to conclude later on Wednesday. While no immediate rate cut is expected, market players await Fed Chair Jerome Powell’s comments for clarity on the future rate path amid a fragile global backdrop.

Key Points:

1. Sensex fell 138 points and Nifty lost 41 points amid weak global cues.

2. FMCG, IT, and financial stocks dragged Indian markets lower.

3. Nifty Media, IT sectors were top losers in Wednesday’s session.

4. Brent crude prices surged over $5 since Israel’s attack on Iran.

5. Trump’s call for Iran’s “unconditional surrender” raised tensions further.

6. US markets slipped on Tuesday over oil price concerns and geopolitical unease.

7. Investors await US Fed’s interest rate outlook to gauge future global trend.