Sensex Drops 1,700 Points, Rupee Hits Record Low As Mideast War Jolts Markets

New Delhi, March 4: Indian equities opened deep in the red on Wednesday as global risk sentiment soured amid the ongoing Iran war. The benchmark Sensex dropped over 1,700 points at the open, while the NSE Nifty 50 slipped 500 points, reflecting broad-based selling pressure.

As of 9:17 am, the Nifty 50 was trading 2.06% or 517.30 points down at 24,344.05, and the Sensex was trading 2.17% or 1,700.08  points down at 78,596.45.

Infosys, BEL, HCLTech were the only gainers on Sensex after market opened. Barring Nifty IT, selling was seen across all sectors. Nifty MidCap and SmallCap 100 also traded with deep cuts after market opens.

Cues were weak even before the opening bell. GIFT Nifty signalled a sharp gap-down start, quoting at 24,431 — down 551.20 points or 2.21 per cent as of 7:25 am — indicating that traders were bracing for volatility.

Notably, trading on Wednesday resumed after Tuesday’s Holi holiday (March 3), with markets returning to a fragile global backdrop. On Monday, the Nifty had settled at 24,603, dragged lower by losses in financials, auto and consumer stocks — segments that remained under pressure at the open.

The weakness was not confined to India. Across Asia, equities extended losses through the week. South Korea’s Kospi slid 7 per cent in early trade on Wednesday, and was last down 6.6 per cent at 5,406.64. Japan’s Nikkei 225 fell as much as 3.23 per cent, while Hong Kong’s Hang Seng declined up to 1.5 per cent.

Overnight on Wall Street, the Dow Jones Industrial Average recovered nearly 800 points from intraday lows but still finished about 400 points lower, underscoring the fragile mood in global markets.

Meanwhile, the Indian rupee also opened at a record low, sliding 55 paise to 92.02 per US dollar.

Due to the ongoing conflict, Brent crude futures rose to $82.77 per barrel, the highest since July 2024, and have gained nearly 17% in four sessions. Higher oil prices and trade disruptions weigh on large importers of the commodity such as India.