The domestic equity benchmarks traded with major cuts in the afternoon trade as escalating clashes between the US, Israel, and Iran lifted crude oil prices to their highest in 19 months and intensified investor risk aversion. Brent crude climbed strongly on fears of supply disruptions through the Strait of Hormuz, adding to inflation concerns and global market sell-offs. The Nifty traded below the 24,450 mark. All the sectoral indices on the NSE were traded in red, with realty, auto, and oil & gas stocks emerging as top laggards.
At 13:33 ST, the barometer index, the S&P BSE Sensex, slumped 1,306.26 points or 1.63% to 78,932.59. The Nifty 50 index tanked 436.05 points or 1.75% to 24,435.85.
The broader market underperformed the frontline indices. The BSE 150 MidCap Index declined 2.43% and the BSE 250 SmallCap Index fell 2.30%.
The market breadth was weak. On the BSE, 914 shares rose and 3,279 shares fell. A total of 156 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, zoomed 22.46% to 20.98.
Brent crude, the global oil benchmark, climbed 2.79% to $83.67 per barrel.
Economy:
India’s HSBC Services PMI declined to 58.1 in February from 58.4 in January and was lower than the flash estimate of 58.4. New business expanded at its slowest pace since January 2025, while input cost inflation rose to a two-and-a-half-year high, driven by higher food, energy and labour expenses. International sales increased at the fastest pace since August. Employment rose for the second consecutive month, with hiring accelerating from January. Business confidence strengthened to a one-year high. Meanwhile, the HSBC Composite PMI rose to 58.9 in February from 58.4 in January, marking a three-month high.
US-Israel-Iran war enters Day 5:
Equity markets tumbled on Wednesday as the war between the US-Israel alliance and Iran entered its fifth day on March 4, deepening concerns over regional stability and global energy supplies.
On Day 4, Israel carried out fresh airstrikes targeting Iranian missile launchers and a nuclear research facility. In retaliation, Iran reportedly targeted US embassies in the Gulf region and disrupted key energy supply routes, escalating fears of a broader conflict.
With both sides intensifying military operations and diplomacy taking a backseat, US President Donald Trump said the conflict could last four to five weeks, signaling prolonged uncertainty for global markets.
IPO Update:
The initial public offer (IPO) of Sedemac Mechatronics received bids for 70,796 shares as against 56,32,899 shares on offer, according to stock exchange data at 13:20 IST on Wednesday (4 March 2026). The issue was subscribed 0.01 times.
The issue opened for bidding on 4 March 2026 and it will close on 6 March 2026. The price band of the IPO is fixed between Rs 1,287 and 1,357 per share.
Gainers & Losers:
Coal India (up 2.24%), Bharti Airtel (up 1.22%), Infosys (up 1.13%) and Tech Mahindra (up 0.30%) were the major Nifty50 gainers.
Tata Steel (down 6.55%), Larsen & Toubro (down 5.14%), Tata Motors Passenger Vehicles (down 5.14%), SBI Life Insurance Company (down 4.50%) and JSW Steel (down 4.21%) were the major Nifty50 losers.
Stocks in Spotlight:
A B Infrabuild shed 0.40%. The company received an order worth Rs 62.94 crore from the National Highways Authority of India for constructing three vehicular underpasses along with approach roads on the Puintola–Icchapuram stretch of NH-16 in Odisha.
MRF fell 2.76%. The company entered into a non-binding memorandum of understanding (MoU) with Guidance Tamil Nadu, a nodal agency of the Government of Tamil Nadu, to set up a manufacturing facility for tires and allied products at SIPCOT Industrial Park.
Gland Pharma declined 4.23%. The company announced that it has received tentative approval from the U.S. Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Brimonidine Tartrate Ophthalmic Solution, 0.025% (OTC).
Global Markets:
European equities opened lower on Wednesday as markets continue to track the war in the Middle East.
Asian markets traded lower as South Korea led the losses on Wednesday as the war in the Middle East continued unabated.
South Korea’s Kospi plunged 8% Wednesday, on track for its worst day since August 2024, and extending a steep selloff from the previous session. The Korea Exchange temporarily halted trading for the Kospi index on Wednesday. A circuit breaker was also activated on the Kosdaq, which also fell by over 8%.
A senior commander from Iran’s Revolutionary Guard said on Monday that the critical artery had been shut and warned that any vessel attempting to transit the waterway would be targeted, according to Iranian media.
U.S. President Donald Trump reportedly said Tuesday afternoon that the U.S. Navy will escort tankers through the Strait of Hormuz, if necessary.
Investors in the region will also be watching an annual parliamentary meeting by China’s policymakers that kicks off later in the day.
The gathering, dubbed the “Two Sessions,” consists of a consultative congress that will start later in the day and a National People’s Congress due to open Thursday. Chinese Premier Li Qiang is set to announce a series of economic targets at the NPC, which had largely been decided at a December meeting.
Meanwhile, China’s factory activity faltered in February as manufacturers paused production and cargo shipments to celebrate an extended holiday, an official survey showed on Wednesday.
The official manufacturing purchasing managers index fell to 49 in February, according to the National Bureau of Statistics, missing the widely reported forecast of 49.1.
Overnight in the U.S., stocks had another wild session as concerns around a prolonged U.S.-Iran conflict rattled markets.
The Dow Jones Industrial Average lost 403.51 points, or 0.83%, and ended at 48,501.27. The S&P 500 slipped 0.94% to close at 6,816.63, while the Nasdaq Composite shed 1.02% to settle at 22,516.69.