Investors lost nearly Rs 8 lakh crore in market value on Wednesday as Indian equity benchmarks recorded their sharpest single-day decline since March 30 after US President Donald Trump said the ceasefire with Iran was over.
The BSE said investors' wealth declined by Rs 7.89 lakh crore during the session.
The NSE Nifty 50 closed down 516.65 points, or 2.12%, at 23,882.05. The BSE Sensex dropped 1,677.12 points, or 2.15%, to end at 76,503.60. That eroded investors' wealth by Rs 7.89 lakh crore.
The selloff was broad-based, with banking and financial stocks accounting for a large share of the decline. HDFC Bank, ICICI Bank, Reliance Industries Ltd., Larsen & Toubro and Bharti Airtel were the biggest drags on the Nifty 50, according to exchange data. HDFC Bank alone shaved 66.38 points off the benchmark, followed by ICICI Bank at 55.64 points, Reliance Industries at 50.30 points, Larsen & Toubro at 26.79 points and Bharti Airtel at 23.53 points.
The benchmarks posted their steepest one-day decline since March 30 as investors reacted to escalating geopolitical tensions in the Middle East.
PSU Banks, Financials Lead Sectoral Decline
All major sectoral indices ended lower. Nifty PSU Bank was the worst-performing sector, falling 2.72%. Nifty Bank declined 2.51%, while Nifty FMCG lost 2.49%.
Nifty Financial Services dropped 2.45%, followed by Nifty Rural at 2.34%, Nifty Media at 2.31%, Nifty Auto and Nifty Oil & Gas at 2.23% each, and Nifty Consumption at 2.07%.
Nifty Realty fell 1.87%, Nifty India Defence declined 1.67%, Nifty IT lost 1.37% and Nifty Energy slipped 1.26%. Nifty Pharma and Nifty Metal also ended lower, declining 0.97% and 0.91%, respectively.
ONGC, Bajaj Auto and Hindalco were among the few stocks that provided positive contributions to the Nifty during the session, though their gains were outweighed by widespread selling across the broader market.
Trump's Remarks Add to Market Pressure
Markets extended losses after Trump said the tentative ceasefire between the United States and Iran had effectively ended.
"For me, I think it's over," Trump said on Wednesday while attending the NATO summit. "As far as I'm concerned, it's just a waste of time."
His comments followed a fresh round of US military strikes on Iran and Washington's decision to withdraw a waiver that had allowed certain transactions involving Iranian crude oil. The moves came after attacks on commercial vessels passing through the Strait of Hormuz, raising concerns over the outlook for global energy supplies and regional stability.
Trump Also Criticised Iran's Leadership
"I don't want to deal with them, but they're scum," he said. "They're sick people, they're led by sick people, and they're vicious, violent people. If they had a nuclear weapon, they'd use it."
Earlier, the US Central Command said American forces had carried out strikes against Iran after Tehran attacked three commercial vessels transiting the Strait of Hormuz. The military said the operation was intended to impose costs on Iran for attacks on civilian shipping.
Separately, the US Treasury's Office of Foreign Assets Control revoked a licence that had allowed certain transactions involving Iranian crude oil. The agency replaced the June 21 waiver with a new authorisation requiring previously permitted activities to be wound down, with the revised licence taking effect on July 7.
Iran condemned the move. Deputy Foreign Minister Kazem Gharibabadi said Washington had violated the Islamabad Memorandum of Understanding through its military actions and sanctions, adding that Tehran would respond to protect its national interests and security.
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