Daijiworld Media Network - Mumbai

Mumbai, Jul 8: Indian equity markets witnessed a steep decline on Wednesday, with benchmark indices Sensex and Nifty plunging more than 2 per cent amid a combination of soaring crude oil prices, weak global market sentiment and heightened geopolitical uncertainty.

Selling pressure intensified in the latter half of the trading session after US President Donald Trump stated that an interim agreement with Iran aimed at ending the ongoing conflict was "over", raising fears of further instability in the Middle East and possible disruptions to global crude oil supplies.

By afternoon trade, the Nifty had dropped nearly 500 points, while the Sensex was down by more than 1,600 points. The downturn was broad-based, with 45 of the 50 stocks in the Nifty index trading in negative territory.

The sharp correction wiped out nearly Rs 4 lakh crore in investor wealth, pushing the total market capitalisation of companies listed on the Bombay Stock Exchange (BSE) below Rs 476 lakh crore.

Rising crude prices, combined with uncertainty over developments in the Gulf region, prompted investors to shift away from riskier assets, leading to widespread selling across domestic equities.

The weakness was visible from the opening bell. The Sensex began the day at 77,816.45, down 364.27 points or 0.46 per cent, while the Nifty opened 139.15 points lower, or 0.57 per cent, at 24,259.55.

Sector-wise, the Nifty Oil & Gas index emerged as the biggest loser in early trade, slipping over 1 per cent. Other major sectoral indices, including Nifty Media, Nifty PSU Bank, Nifty Realty, Nifty Cement, Nifty Metal, Nifty Auto and Nifty FMCG, also traded lower, reflecting broad-based weakness across the market.