Indian benchmarks fell for a sixth session as Brent crude crossed $91 a barrel and US-Iran ceasefire talks collapsed. The Nifty breached 24,200 support.
Indian benchmarks extended their losing streak to a sixth consecutive session on Tuesday, with crude oil prices crossing $91 a barrel and fading hopes of a West Asia resolution keeping investors on the sidelines. The Nifty 50 settled at 24,154.90, down 132.75 points or 0.55%, breaching the 24,200 support level that had held for most of the past week. The Sensex closed at 77,235.46, shedding about 0.6%.
The selloff came after a temporary US-Iran ceasefire expired, with Iran hardening its stance and Washington ruling out an extension. President Donald Trump said on Tuesday no talks were taking place with Iran and insisted the Strait of Hormuz was open, contradicting Iran’s assertion that the critical waterway remained shut to shipping, Reuters reported. The conflicting messages kept oil supply uncertainty high.
Brent crude futures climbed 26 cents to $91.28 a barrel by 0004 GMT on Wednesday, while US West Texas Intermediate crude rose 37 cents to $85.31. Both contracts closed on Tuesday at their highest since July 24 as hopes of peace between the US and Iran faded. Oil prices have climbed for four straight days.
The Nifty has declined 1.7% over the six-session period. Foreign outflows and inflation concerns added to the pressure. The rupee weakened against the dollar, facing crucial support at 95.80, according to the source.
Asian semiconductor stocks tumbled on Wednesday, tracking a sharp selloff in US technology shares overnight. South Korea’s Kospi fell as much as 6.8%, with Samsung Electronics and SK Hynix each slumping more than 7%. A Bloomberg gauge of Asian semiconductor names declined more than 2%. In Japan, Kioxia Holdings dropped as much as 11%, while Tokyo Electron and Advantest also sank. The Philadelphia SE Semiconductor Index, tracking US tech shares, plunged 5% overnight.
The declines tracked losses in US semiconductor and other AI-related shares as concerns over inflation and rising government debt kept bond yields elevated. The threat of higher borrowing costs added to market worries amid ongoing uncertainty over the Iran war, Bloomberg reported. Japan’s Nikkei 225 fell 2.97% to 65,459.71 in early trading, while the broader Topix slipped 2.72%.
Gold prices edged higher in early Asian trade on Wednesday, up 0.2% at $4,342.33 per ounce, as US Treasury yields eased from recent highs. Market participants awaited the release of the Federal Reserve’s meeting minutes later in the day. Indian bonds held firm, supported by stable inflation and strategic RBI measures to attract foreign investment.
The Securities and Exchange Board of India proposed an overhaul of its settlement framework that could allow parties to resolve enforcement cases even after they reach the Securities Appellate Tribunal or the Supreme Court, potentially reducing the backlog of disputes. Separately, the National Stock Exchange of India is seeking a valuation of as much as ₹5.26 trillion ($55 billion) in its planned IPO, with shares marketed at ₹2,000 to ₹2,100 apiece, people familiar with the matter said.
The Federal Reserve’s meeting minutes are due later on Wednesday, which could provide further direction on the rate path. Oil supply uncertainty remains high, and the market will watch for any developments in US-Iran talks.
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