Indian stock markets experienced a sharp downturn on Wednesday, mirroring a global sell-off fueled by escalating tensions in West Asia. The Nifty 50 index fell 2.12 percent, closing at 24,338.90, while the Sensex dropped 2.09 percent to 78,589.14 as of 10:07 AM.
The decline saw investors lose ₹9.5 trillion, bringing the total market capitalization of BSE-listed companies down to ₹446.8 trillion, a decrease from ₹456.2 trillion the previous day.
The India VIX, a measure of market volatility, spiked 22 percent, reaching its highest level in over nine months, reflecting heightened investor anxiety. Overall market volatility has soared 119 percent year-to-date.
Among sectoral indices, the Nifty Metal index was the worst performer, falling 4 percent. The Nifty Auto index too experienced significant losses, declining nearly 3 percent, with Samvardhana Motherson International, TVS Motor Company, and Bosch among the leading decliners.
Despite the broader market downturn, shares of Information Technology (IT) companies demonstrated resilience, with Infosys up 2 percent and Persistent Systems gaining 1 percent. This performance was partly attributed to the weakening rupee, which benefits IT firms that generate revenue in foreign currencies.
The Indian Rupee also hit a record low, breaching the 92/$ mark, driven by rising oil prices in the wake of the escalating conflict in West Asia involving Iran.
Paras Defence and Space Technologies saw a surge in its share price, jumping over 10 percent after signing a memorandum of understanding (MoU) with South Korea’s Green Optics. The South Korean company will manufacture optics and optical systems for space, defence, and other applications.
Coal India bucked the trend, rising over 2 percent to grow a top gainer in the Nifty50 index, following a 50 percent quantity allocation in the e-auction of coal, 35 percent higher than the notified price in February.
Shares of IndiGo and SpiceJet also experienced declines, falling as much as 4 percent and 8 percent, respectively.