The domestic equity indices ended sharply lower on Wednesday, as escalating geopolitical tensions and a surge in crude oil prices rattled investor sentiment. The ongoing conflict involving the US, Israel and Iran led to a broad risk‑off mood, while heavy selling by foreign institutional investors and other global headwinds further weighed on market confidence, pushing the Sensex and Nifty deep into the red.
The Nifty ended below the 24,500 level. Except for the IT index, all other sectoral indices on the NSE ended in the red.
As per provisional closing data, the barometer index, the S&P BSE Sensex tanked 1,122.66 points or 1.40% to 79,116.19. The Nifty 50 index dropped 385.20 points or 1.55% to 24,480.50.
The broader market underperformed the key equity indices. The S&P BSE Mid-Cap index tumbled 2.26% and the S&P BSE Small-Cap index slumped 2.24%.
The market breadth was weak. On the BSE, 1,054 shares rose and 3,241 shares fell. A total of 150 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, surged 23.40% to 21.14.
In the commodities market, Brent crude for May 2026 settlement surged $2.01 or 2.47% to $83.41 a barrel amid escalating geopolitical tensions in the Middle East and concerns over potential disruptions to oil supply.
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:
The war between the United States, Israel and Iran entered its fifth day amid escalating military actions and rising tensions. Israeli and U.S. forces have continued air and missile strikes on Iranian military infrastructure, while Iran has launched retaliatory drone and missile attacks on regional and U.S. positions. The conflict intensified further after the death of Iran’s long-time Supreme Leader Ayatollah Ali Khamenei, and the clerical Assembly of Experts reportedly elected his son, Mojtaba Khamenei, as the country’s new Supreme Leader — a controversial appointment that has drawn global attention and raised the stakes in the confrontation. The ongoing hostilities and uncertainty over Iran’s leadership transition have rattled global markets and heightened concerns over regional stability and energy supplies.
New Listing:
Shares of PNGS Reva Diamond Jewellery ended at Rs 413.95 on the BSE, representing a premium of 7.24% as compared with the issue price of Rs 386.
The stock debuted at Rs 372, marking a premium of 11.27% to the issue price.
The stock has hit a high of Rs 433.55 and a low of Rs 359.60. On the BSE, over 2.39 lakh shares of the company were traded in the counter.
Buzzing Index:
The Nifty Metal index declined 3.99% to 11,779.75. The index rose 0.24% in the past trading session.
Tata Steel (down 6.76%), Steel Authority of India (down 5.71%), Jindal Steel (down 5.57%), NMDC (down 5.27%), Hindustan Copper (down 4.85%), APL Apollo Tubes (down 4.7%), JSW Steel (down 4.21%), Hindustan Zinc (down 4.06%), Jindal Stainless (down 3.91%) and Lloyds Metals & Energy (down 3.49%) declined.
Stocks in Spotlight:
Aurobindo Pharma fell 1.75%. The company informed that its wholly-owned subsidiary, Eugia Pharma Specialities, has launched Pomalidomide Capsules in strengths of 1 mg, 2 mg, 3 mg, and 4 mg in the U.S. market.
A B Infrabuild shed 1.47%. 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 2.60%. 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 4.63%. 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).
Larsen & Toubro fell 4.53% as escalating Middle East tensions raised concerns over project execution risks.
The decline comes amid the intensifying Iran conflict following coordinated U.S.–Israeli airstrikes on Iranian military and nuclear targets. The strikes reportedly killed Supreme Leader Ali Khamenei and triggered retaliatory missile and drone attacks by Iran. Iran launched strikes on Israel and several U.S. bases located across Gulf countries. The conflict has disrupted shipping routes and energy flows across the Middle East. The turmoil has also pushed crude oil prices higher and increased regional business uncertainty.
Bharat Coking Coal added 4.36% after the company announced that Rajesh Kumar (Director – Finance) has been appointed as Chief Financial Officer (CFO) with immediate effect, replacing M.S. Raju, GM (Finance).
Natco Pharma shed 0.38%. The company, along with its partner Breckenridge Pharmaceutical Inc., launched Pomalidomide Capsules, a generic version of Celgene’s Pomalyst, in the U.S. market.
Silver Touch Technologies fell 3.53%. The company said that it has secured a project for designing and developing the website and digital platform for the Centre for Integrative Medicine & Research (CIMR) at AIIMS New Delhi.
Global Markets:
European equities traded higher on Wednesday after data showed that the euro area’s seasonally adjusted unemployment rate was 6.1% in January 2026, down from 6.2% in December 2025 and from 6.3% in January 2025.
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 12% 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.