Investors lost more than Rs 4.1 lakh crore in market value on Wednesday as Indian equities extended losses after renewed geopolitical tensions in the Middle East triggered broad-based selling.
The NSE Nifty 50 traded 1.3% lower at 24,088.60, while the BSE Sensex fell 998 points, or 1.3%, to 77,183. The sharp decline wiped out Rs 4.07 lakh crore in investors' wealth, according to BSE data.
Banking shares remained the biggest drag on the benchmarks. Reliance Industries Ltd., ICICI Bank, Bharti Airtel, HDFC Bank and Axis Bank contributed the most to the Nifty's decline, according to exchange data. Reliance Industries erased 30.68 points from the benchmark index, followed by ICICI Bank at 28.48 points and Bharti Airtel at 18.16 points.
The broad-based selloff came as investors assessed fresh developments in the conflict involving the United States and Iran, raising concerns over the global risk environment.
Banking, Oil & Gas Stocks Lead Losses
Most sectoral indices traded lower during the session.
Nifty Oil & Gas declined 1.57%, making it the weakest-performing sector. Nifty FMCG lost 1.33%, while Nifty Media fell 1.29%.
Nifty Financial Services slipped 0.92%, followed by Nifty Rural at 0.88%, Nifty Bank at 0.78%, Nifty Consumption at 0.75%, Nifty PSU Bank at 0.74% and Nifty Auto at 0.58%.
Nifty IT declined 0.52%, Nifty Energy lost 0.47% and Nifty India Defence edged down 0.07%. Nifty Metal, Nifty Pharma and Nifty Realty bucked the broader trend, gaining 0.03%, 0.07% and 0.59%, respectively.
Trump Says Ceasefire With Iran Is Over
Investor sentiment weakened further after US President Donald Trump said he no longer considered the tentative ceasefire with Iran to be in effect.
"For me, I think it's over," Trump said on Wednesday while attending the NATO summit in Ankara alongside NATO Secretary General Mark Rutte. "As far as I'm concerned, it's just a waste of time."
His remarks followed a fresh round of US military strikes on Iran and Washington's decision to withdraw a waiver that had allowed certain Iranian oil transactions. The moves came after attacks on commercial vessels passing through the Strait of Hormuz and added to concerns over energy supplies and regional stability.
Trump also delivered a sharp criticism of Iran's leadership.
"I don't want to deal with them, but they're scum," Trump 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 launched strikes against Iran after Tehran attacked three commercial vessels transiting the Strait of Hormuz. The military said the operation was intended to impose costs for attacks on civilian shipping.
Separately, the US Treasury's Office of Foreign Assets Control revoked a licence that had permitted certain transactions involving Iranian crude oil. The agency replaced the June 21 waiver with a new authorisation requiring previously approved activities to be wound down, with the revised licence taking effect on July 7.
Iran criticised Washington's actions. Deputy Foreign Minister Kazem Gharibabadi said the US had violated the Islamabad Memorandum of Understanding through both its military operations and sanctions measures, adding that Tehran would act to safeguard its national interests and security.
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