Sensex Tumbles 400+ Points! Here's What's Pulling the Market Down Today

Indian benchmark equity indices Sensex and Nifty extended their losing streak for a third straight session on Wednesday, opening sharply lower as rising global crude oil prices and heavy selling in banking stocks dampened investor sentiment.

In early trade, the BSE Sensex dropped 403.54 points to 77,066.06, while the NSE Nifty 50 slipped 114.75 points to 24,070.05, reflecting broad-based weakness across key sectors.

The decline was led by banking and financial stocks, with Axis Bank, State Bank of India, HDFC Bank and ICICI Bank among the biggest drags on the benchmark indices. Other notable losers included InterGlobe Aviation, Sun Pharma, Adani Ports and UltraTech Cement. On the other hand, Titan, Maruti Suzuki, Asian Paints and Eternal managed to trade in positive territory, providing limited support to the market.

Market experts attributed the weak sentiment primarily to the sharp rise in global crude oil prices and persistent geopolitical tensions, which have increased concerns over inflation and higher input costs. Rising oil prices are often viewed as a negative factor for India, one of the world's largest crude importers, as they can widen the trade deficit and put pressure on inflation.

Brent crude, the international benchmark, climbed 1.15 per cent to USD 92.06 per barrel, adding to investor worries.

Despite the weak domestic market, Asian equities presented a mixed picture. South Korea's KOSPI surged more than 5 per cent, while Japan's Nikkei 225 and China's Shanghai Composite also traded higher. Hong Kong's Hang Seng index, however, remained under pressure.

US markets ended Tuesday's session on a positive note, while Foreign Institutional Investors (FIIs) offered some support by purchasing equities worth Rs 1,650.16 crore in the previous trading session.

On Tuesday, the Sensex had settled 238.41 points lower at 77,470.11, while the Nifty declined 50.80 points to close at 24,187.70, setting the stage for another weak opening on Wednesday.