- Domestic equities opened lower amid weak global cues and geopolitical tensions
- Nifty fell nearly 0.93%, Sensex dropped about 0.89% in early trade on Wednesday
- US President Trump delayed attacks on Iran, citing progress in peace talks
Domestic equities opened lower on Wednesday, tracking weak global cues, rising US bond yields and lingering geopolitical tensions. Benchmark indices stayed in negative territory in early trade, with selling pressure visible across sectors. Volatility edged higher, underscoring a cautious tone among investors.
Nifty fell as much as 0.93%, whereas Sensex fell nearly 0.89% in early trade. Nifty has, however, recovered slightly, and is currently trading 0.59% lower at 23,479.70, while the Sensex is down by 0.63% at 74,725, as of 10:30 am.
Most sectors are trading in red, with Nifty Media, leading the losses with cuts of over 2%, followed by Realty, Auto, and PSU Bank. Pharma is up 0.48%
The broader market is also facing pressure with the Nifty Smallcap 250 falling almost 0.40%, and the Nifty Midcap 150 dropping about 0.26%.
Here's three reasons why markets are crashing on Monday:
Trump Says War Will End “Very Quickly”
US President Donald Trump said the war will end “very quickly” because Iran wants a deal badly. He predicted oil prices will plummet, saying "there's so much oil out there, they are going to come plummeting down." Earlier Trump said he was an hour away from making a decision to restart attacks on Iran, but put it off after receiving a call from interlocutors, including Qatar and the UAE, on Tehran being "reasonable" in the peace talks.
The US President said the negotiators said they had made a lot of progress in talks with Iran over the last two days.
On X, Iran's Foreign Minister Abbas Araghchi said that months after the war began, the US Congress has acknowledged losing dozens of aircraft worth billions. He claimed Iran's Armed Forces were the first to shoot down an F-35, adding that a return to war would bring "many more surprises" based on lessons learned.
Get the latest updates on the US-Iran conflict here.
Crude Prices At $111
Oil prices were little changed on Wednesday as traders assessed President Donald Trump's latest threat to resume military strikes against Iran, keeping the geopolitical risk premium firmly embedded in crude markets. Brent crude slipped below $111 a barrel after easing 0.7% in the previous session, while West Texas Intermediate traded near $104.
Despite the modest pullback, both benchmarks remain sharply higher as tensions in the Middle East continue to disrupt one of the world's most critical oil corridors.
Rupee At Record Low
The rupee continues its slide, to open on an all-time low of 96.85 in trade on Tuesday, as elevated crude oil prices, global uncertainty, and a stronger dollar continue to remain key risks for the domestic unit. The rupee has depreciated for the 13th straight calendar day.
After opening, it slumped as much as 96.93 against the greenback. It hit the $96 mark last Friday.
Traders said the RBI was in the market selling dollars to curb rupee weakness, according to Bloomberg reports.
The yield on the 30-year U.S. Treasury bond also surged to 5.18% on Tuesday, reaching its highest level since the eve of the 2007 global financial crisis. The broad sell-off in long-term debt has pushed yields — which move inversely to bond prices — significantly higher across the curve. The 10-year Treasury yield also climbed, reaching 4.66%, its highest level in over a year.
ALSO READ: Rupee Flirts With 97/$, Hits New Record Low Amid Rising US-Iran Tensions
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