The Indian stock market on Wednesday extended its losses amid concerns surrounding the conflict in West Asia.
The benchmark Sensex index ended the day down by more than 1,340 points, which was 1.7%, lower than the previous day’s closing. The Nifty fell by 1.6% to close the session below 23,900 points.
Stock markets had begun to slide on March 2 after the conflict began.
The India VIX index, which measures volatility in the market, spiked more than 11.3% on Wednesday.
Across Asia, major stock indices were mixed on Wednesday. Hong Kong’s Hang Seng index closed 0.2% lower, while Japan’s Nikkei and South Korea’s Kospi rose 1.4%.
Rupee plunges
The Indian rupee also weakened on Wednesday by 19 paise to close at 92.04 against the US dollar, PTI reported. The currency had closed at 91.8 on Tuesday.
Global oil prices have surged due to the conflict in West Asia, with the benchmark Brent crude rising from about $72 per barrel on February 27, just before the conflict began, to just below $90 per barrel by Wednesday.
On Monday, global oil prices had briefly crossed the $100-per-barrel mark, the highest since July 2022.
Global oil prices have risen by about 50% since Israel and the United States attacked Iran on February 28. The escalating tensions have raised fears of disruption to shipments through the Strait of Hormuz.
The narrow waterbody connects the Gulf to the Arabian Sea. About 20% of global petroleum liquids consumption traverses the maritime chokepoint.
The conflict in West Asia began after Israel and the United States launched a joint operation to “degrade the capabilities” of the Iranian government. Tehran retaliated by striking Israel and US military bases in the region, and targeting major cities in other Gulf countries and some ships.