- India's benchmark indices fell over 1% amid foreign capital outflows and Middle East tensions
- Nifty 50 dropped below 24,000 points, a level last seen in April
- Nifty and Sensex are down 8% and 9% respectively year-to-date
India's benchmark stock indices crashed yet again on Wednesday, after a rebound in the previous session, weighed by relentless foreign capital outflows, lack of positive domestic triggers and tensions in the Middle East.
Both the Nifty 50 and BSE Sensex tanked over 1% intraday. The Nifty slipped below its immediate support of 24,000 points to a level last seen in April when the US unleashed its 'Liberation Day' tariff policies.
The Nifty and Sensex are down 8% and 9% year-to-date.
FII Outflows
Foreign portfolio investors stayed net sellers of Indian equities for the eight consecutive session on Tuesday, even as Nifty and Sensex snapped a two-day losing streak. FPIs offloaded stocks worth Rs 4,673 crore, as per NSE data, as the Middle East conflict kept investors unnerved about risk assets.
Overseas funds have pulled out Rs 47,300 crore or $5.2 billion so far this year.
A withdrawal of foreign money has added further pressure on the rupee, already weighed by elevated oil prices.
Iran War
The war between the United States and Israel and Iran entered its 12th day with no concrete resolution in sight. Tehran experienced one of its most intense nights of bombardment by the US and Israel since the start of the war as numerous areas of the sprawling city were hit to devastating effect, as per reports.
The US said it took out more than a dozen minelaying Iranian vessels to help prevent any attempt to close the crucial Strait of Hormuz waterway.
The UAE's air defences intercepted missiles and drones from Iran, with the Defence Ministry affirming the right to respond to more than 1,000 attacks since the start of the war. Saudi Arabia said it shot down seven drones targeting the vital Shaybah oilfield near the UAE border. No damage or casualties were reported.
Follow all the latest on the Iran conflict.
Oil Prices
International oil prices fell sharply from multi-year highs, while concerns shifted to securing energy supply.
Global benchmark Brent traded below $88 per barrel and West Texas Intermediate dropped near $83 following reports that the International Energy Agency is proposing the largest ever oil release in its history, in an attempt to tackle the ongoing supply shortage.
However, in India, the concerns have more to do with supply of natural gas to consumers and businesses. The government has instructed oil marketing companies to prioritise households and priority sectors like hospitals and educational facilities for supply of liquefied natural gas.
ALSO READ: Oil Prices Drop Sharply Amid Reports Of IEA Proposing Largest Ever Release
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