A sharp decline was observed in the Indian stock market on Wednesday. The market, which opened with gains in early trade, soon lost momentum, and the Sensex fell by more than 1000 points. Currently, it appears to be trading around the 77,100–77,200 level. Nifty also dropped over 300 points, slipping below the crucial 23,900 level.
The market is under pressure due to several reasons. On one hand, concerns about an energy crisis persist, while news of the Essential Commodities Act being implemented has also increased investor caution. Additionally, continuous selling by Foreign Institutional Investors (FIIs) has further accelerated the market’s decline.
In day’s trading, some selected stocks did show strength. Shares of Wipro, Tata Steel, Power Grid, Hindalco, and Tech Mahindra were in the green. On the other hand, banking stocks like Kotak Mahindra Bank, ICICI Bank, HDFC Bank, Axis Bank, and Bajaj Finserv remained under pressure. Besides this, auto stocks like Mahindra & Mahindra and TVS Motor also saw selling. Shares of Reliance Industries and Bharti Airtel were also among the top losers.
Uptick in Asian Markets
Asian stock markets showed a positive trend on Wednesday. Declining crude oil prices boosted investor confidence, and most markets remained in the green. Japan’s Nikkei 225 rose by about 1.36%, while the Topix Index recorded a gain of approximately 1.22%. South Korea’s Kospi surged by about 2.52%, and the small-cap index Kosdaq was also up by approximately 1.39%. On the other hand, Hong Kong’s Hang Seng Index futures were seen trading around the 25,936 level, while the previous close was 25,959.9.
Wall Street Update
On Tuesday, the US stock market Wall Street saw a mixed trend, and major indices closed in the red. During this period, investors kept an eye on falling oil prices and geopolitical tensions related to Iran. The S&P 500 closed down approximately 0.21% at 6,781.48. The Dow Jones Industrial Average slipped about 34.29 points or 0.07% to 47,706.51. However, the Nasdaq Composite closed with a marginal gain of 0.01% at 22,697.10.
Crude Oil Prices Ease
Crude oil prices saw a slight decline on Wednesday morning, though they were trading somewhat above their lows. Market pressure appeared to ease after signals from US President Donald Trump indicated an end to ongoing tensions in Iran. Meanwhile, WTI crude was seen trading around $83.43 per barrel with a decline of about 0.03%. Brent crude, on the other hand, slipped from its previous session’s high of $119.50 per barrel and is now in the range of approximately $87–90 per barrel.
IEA’s Major Move
According to a report by The Wall Street Journal, the International Energy Agency (IEA) has proposed releasing its Emergency Oil Reserve to control the surge in crude oil prices during the Iran-related conflict. Under this plan, more than 182 million barrels of oil could be released into the market, which is expected to increase supply and reduce pressure on prices.
