𝗦𝘁𝗼𝗰𝗸 𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝗿𝗼𝗽𝘀 𝗢𝘃𝗲𝗿 𝟭% 𝗼𝗻 𝗨𝗦-𝗜𝗿𝗮𝗻 𝗧𝗲𝗻𝘀𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗢𝗶𝗹 𝗣𝗿𝗶𝗰𝗲 𝗦𝘂𝗿𝗴𝗲
Indian equity benchmarks fell more than 1% on Wednesday. The BSE Sensex and Nifty50 both declined as investor sentiment weakened.
The drop erased over Rs 3 lakh crore from the total market value of BSE-listed companies. The overall market capitalization fell to nearly Rs 459 lakh crore.
VK Vijayakumar is the Chief Investment Strategist at Geojit Investments. He said the latest conflict in West Asia pushed Brent crude prices close to $97 per barrel. He added market participants will track the Reserve Bank of India policy meeting on June 5.
He also noted semiconductor-driven markets in South Korea and Taiwan remain strong. India's corporate earnings outlook for FY27 faces pressure from slower economic growth and high inflation. Still, retail investors continue to provide support.
Jateen Trivedi is the Vice President at LKP Securities. He said rising crude oil prices fuel concerns about India's import costs and inflation.
Top reasons for the fall:
US-Iran tensions: The US military intercepted Iranian missile and drone attacks in the Gulf region. The US Central Command carried out defensive strikes on Iran's Qeshm Island.
Crude oil prices: Brent crude futures rose nearly 1% to trade close to $97 per barrel. US WTI crude gained about 1% to hover around $95 per barrel.
Rupee weakness: The Indian rupee fell 14 paise against the US dollar to 95.50.
Foreign investor outflows: Overseas investors sold Indian shares worth nearly Rs 8,363 crore on Tuesday.
US bond yields: The 10-year Treasury yield rose to 4.457%. The 30-year bond yield climbed to 4.97%. Higher yields make fixed-income investments more attractive and pull funds away from equities.
Profit-booking in IT stocks: Investors locked in profits in large-cap technology stocks after recent gains. The decline in heavyweight IT stocks added to the negative mood.