Stock Market Crash: Indian benchmark indices extended their losses on Wednesday as rising crude oil prices and continued uncertainty in West Asia weighed on investor sentiment.
At 12:15 pm, the Sensex was down 622.71 points, or 0.82 per cent, at 74,954.87, while the Nifty 50 fell 152.30 points, or 0.64 per cent, to 23,482.80.
Meanwhile, Brent crude was trading at $99.46 a barrel, up 1.57 per cent, keeping oil prices close to the psychologically important $100 mark. The continued rise in crude, amid no clear signs of a truce in West Asia, has emerged as a key concern for equity investors.
IT stocks drag the market
The pressure was particularly visible in technology stocks, with Tech Mahindra, HCL Technologies and Infosys among the biggest losers on the Nifty 50.
The Nifty IT index fell more than 3 per cent, making it the worst-performing sectoral index at the time. The Nifty Healthcare index, meanwhile, outperformed the broader market.
The weakness extended beyond large-cap stocks, with the Nifty MidCap 100 down 0.49 per cent and the Nifty SmallCap 100 lower by 0.3 per cent.
At noon, the Sensex was down 573.53 points, or 0.76 per cent, at 75,004.05, while the Nifty declined 138.65 points, or 0.59 per cent, to 23,496.45.
Crude remains key market trigger
With Brent crude moving closer to $100 a barrel, investors are increasingly focused on the economic impact of sustained higher oil prices.
For India, a prolonged rise in crude can put pressure on inflation and the external balance while raising costs for oil-sensitive businesses. Markets are therefore closely watching developments in West Asia for signs of de-escalation.
The combination of elevated crude prices and geopolitical uncertainty has kept risk appetite subdued, with investors also tracking the impact on corporate earnings and the broader economic outlook.