Indian stock markets suffered a brutal sell-off on Wednesday, September 2, as escalating US-Iran military tensions sent crude oil prices surging past $96 per barrel. The BSE Sensex plunged 723 points to 76,220 while the NSE Nifty 50 tumbled 232 points to 23,823 within the first minute of trading, wiping out nearly Rs 5 lakh crore in investor wealth.
Markets Open Deep in Red
The Sensex opened 472 points lower at 76,471, while the Nifty started 197 points down at 23,858. All 30 Sensex stocks traded in the red. The BSE market capitalisation dropped from Rs 4,88,11,459.59 crore to Rs 4,83,64,200.49 crore in minutes. This followed a weak close on Tuesday where the Sensex ended at 76,944.28 and the Nifty at 24,055.80.
Crude Oil Surge Fuels Global Sell-Off
Brent crude futures rose over 1 percent to near $96 a barrel after fresh clashes between the US and Iran. Tehran launched missiles and drones in response to a new wave of US attacks. The conflict had cooled for a month without direct military action before this escalation. Rising oil prices pushed global bond yields higher, spooking equity markets worldwide.
Global Markets Under Pressure
Asian markets fell sharply on Wednesday. Japan’s Nikkei 225 dropped 1.60 percent while Topix slipped 1.44 percent. South Korea’s KOSPI crashed 2.87 percent and the small-cap Kosdaq fell 2.51 percent. The MSCI Asia Pacific index lost 1 percent. Wall Street also closed lower on Tuesday with the Dow Jones falling 419 points or 0.79 percent to 52,766.93, the S&P 500 down 55 points to 7,631.47, and the Nasdaq dropping 271 points to 26,099.77.
Technical Outlook Remains Weak
Gift Nifty traded at a 48-point discount around 24,042, signaling a further weak opening. HDFC Securities Deputy Vice President Nandish Shah noted that the 24,200-24,250 band continues to act as strong resistance with multiple moving averages clustering there. A sustained close below 24,000 could push the index toward the 23,823-23,890 support zone. Reliegare Broking SVP Research Ajit Mishra said the overall trend remains weak with support seen in the 23,900-23,800 zone.
