Bears grip D-Street: ₹11 lakh crore wiped out in minutes as Sensex, Nifty tank over 2% on oil shock

The Indian benchmark equity indices extended their fall on Wednesday, tracking a sharp sell-off in global equities and a spike in oil prices amid escalating U.S.-Iran tensions.

The BSE Sensex plunged as much as 1,795 points, or 2.23%, to hit an intraday low of 78,443.20, while the NSE Nifty tumbled 531 points to touch 24,333.5. The broader market mirrored the weakness, with the Nifty Midcap 100 and Nifty Smallcap 100 falling over 2% each.

The sharp decline wiped out over ₹11 lakh crore of investor wealth, with the total market capitalisation of BSE-listed companies dropping to ₹446.46 lakh crore.

Global cues weigh

Asian markets extended their decline for a third straight day, with South Korea’s Kospi plunging 7% as uncertainty surrounding escalating geopolitical tensions in the Middle East weighed heavily on investor sentiment. Despite trimming some losses, U.S. stocks ended lower overnight.

Oil prices remained firm around the $82-per-barrel mark, even as U.S. President Donald Trump assured that shipping security through the Strait of Hormuz would be maintained.

Investor anxiety intensified after Iran reportedly escalated retaliatory strikes and threatened to close the Strait of Hormuz, a key artery for global oil flows.

Infrastructure, metals, banks drag markets

The Indian markets saw broad-based selling, with infrastructure, metals and banking stocks dragging indices lower in early trade.

Leading the losses was Larsen & Toubro , which plunged 6.98% to ₹3,782.70, emerging as the biggest drag at the open.

Metal major Tata Steel declined 5.03% to ₹200.30, while aviation player InterGlobe Aviation , operator of IndiGo,  slipped 4.73%. Cement giant UltraTech Cement fell 4.13%, and auto major Mahindra & Mahindra dropped 3.70%, reflecting broad-based pressure across capital goods and cyclical names.

Heavyweight Reliance Industries was down 3.58%, while Adani Ports and Special Economic Zone slipped 3.42%.

Financial stocks added to the weakness, with Bajaj Finance declining 3.16%, Axis Bank falling 2.68%, and ICICI Bank losing 2.14%. Public sector lender State Bank of India slipped 2%.

Defensives hold relatively firm; IT bucks trend

Among defensive pockets, FMCG and pharma stocks were relatively resilient but still traded in the red. Hindustan Unilever fell 0.85%, ITC slipped 0.48%, and Sun Pharmaceutical Industries declined 0.59%.

On the positive side, gains were limited and largely confined to IT stocks. Infosys rose 1.56%, emerging as the top gainer at the open. Tata Consultancy Services edged up marginally, while HCL Technologies was flat and Tech Mahindra traded slightly lower.

All sectoral indices in the red

The Indian markets witnessed widespread selling across sectoral indices in early trade, with metals, auto and banking stocks leading the decline, while IT emerged as the lone pocket of resilience.

The Nifty Metal index was the worst performer, falling 3.13% to 11,885.85. Close behind was the Nifty Auto index, down 2.98% at 26,718.75, as automobile stocks extended losses.

Banking indices remained under pressure. The Nifty PSU Bank index dropped 2.85%, while the Nifty Private Bank declined 1.82%. The broader Nifty Financial Services 25/50 index fell 2.19%, indicating widespread selling in financial heavyweights.

Real estate and oil-linked counters were also hit. The Nifty Realty index slipped 2.79%, while the Nifty Oil & Gas index fell 2.71%, tracking weakness in energy stocks. Consumer-focussed segments traded lower as well, with Nifty Consumer Durables declining 2.77% and the Nifty FMCG index down 1.27%.

Media stocks saw sharp cuts, with the Nifty Media index falling 2.64%. Healthcare-related indices such as the Nifty Healthcare Index and Nifty Pharma slipped 1.49% and 1.19%, respectively, reflecting mild defensive weakness.

In contrast, the Nifty IT index bucked the trend, rising 0.32% to 30,370.75, emerging as the only sector trading in positive territory amid the broader risk-off sentiment.

Market breadth sharply negative

The market breadth, indicating the overall strength, was bearish amid sell-off across the broader market.

Out of 3,621 stocks traded, only 603 advanced, while a staggering 2,879 declined, and 139 stocks remained unchanged.

The weakness was also evident in 52-week data. Just 25 stocks touched fresh 52-week highs, compared with 466 hitting 52-week lows. While 61 stocks were locked in the upper circuit, as many as 141 stocks hit lower circuit limits.

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