Indian benchmark indices ended sharply lower on Wednesday after United States President Donald Trump signalled an end to peace negotiations with Iran, triggering a global risk-off sentiment and fears of rising crude oil prices.
The BSE Sensex plunged more than 1,600 points, or around 2 per cent, to close at 76,555, while the NSE Nifty 50 tumbled over 500 points, or more than 2 per cent, to 23,887.45 as investors rushed to cut exposure amid escalating geopolitical tensions.
The sharp sell-off came after Trump, speaking on the sidelines of the NATO Summit in Ankara, declared that negotiations with Iran were effectively over.
“To me, I think it’s over. I don’t want to deal with them anymore. They’re scum… They’re led by sick people… As far as I’m concerned, it’s just a waste of time dealing with them,” Trump said.
The US President also confirmed fresh strikes on Iran, accusing Tehran of violating its commitment by attacking vessels in the Strait of Hormuz.
“We attacked, very powerfully last night… We said, ‘Go and do your funeral stuff,’ and instead of that, they started shooting rockets at ships yesterday. So we hit them very hard last night,” he said.
Trump’s comments intensified concerns over a prolonged conflict in West Asia, prompting investors to move away from riskier assets.
Selling pressure was broad-based, with Nifty Financial Services and Nifty PSU Bank emerging among the worst-performing sectoral indices. Broader markets also witnessed significant declines.
Market volatility spiked sharply, with the India VIX surging more than 28 per cent, reflecting heightened investor anxiety.
Meanwhile, Brent crude oil prices climbed nearly 4 per cent to USD 76.71 per barrel, raising concerns over inflation and the potential impact of higher energy costs on the global economy.
