Nifty 50 slides 1.4% to 25,454 as rising crude prices, U.S.–Iran tensions spook markets

Indian equities snapped a three-day rally as geopolitical tensions between the U.S. and Iran pushed crude prices higher, triggering broad-based selling across sectors.

Indian benchmark indices ended sharply lower on Wednesday, with the Nifty 50 falling 1.4% to close at 25,454.35, weighed down by a spike in crude oil prices amid renewed geopolitical tensions between the United States and Iran.

The market opened on a positive note at 25,873.35 and briefly touched an intraday high of 25,885.30 before sentiment turned decisively negative. Selling pressure intensified as the session progressed, dragging the index down nearly 500 points to an intraday low of 25,388.75 before settling near the day’s bottom.

The sell-off was broad-based. Out of 21 sectoral indices, only five managed to close in the green, while the Auto index led losses, declining 2.1%. Market breadth remained weak, with over 2,300 stocks declining, around 837 advancing, and the remainder ending flat out of the 3,248 stocks traded.

The BSE Sensex also mirrored the weakness, snapping its three-day winning streak and plunging 1,236.11 points, or 1.48%, to close at 82,498.14, as heavyweights across sectors came under pressure.

Investor sentiment turned cautious after WTI crude futures surged past $66.12 a barrel, following reports of escalating tensions between the U.S. and Iran. Market participants grew wary amid speculation of potential U.S. military action targeting Iran’s nuclear facilities, despite reports of informal talks between the two nations earlier this week.

Commenting on the technical outlook, Nandish Shah, Deputy Vice-President at HDFC Securities, said the sharp decline has weakened the short-term bullish structure of the Nifty. He noted that a break below 25,372 could open the door for a further slide toward 25,233, while the 25,550–25,600 zone is likely to act as immediate resistance in the near term.