Indian Sensex drops 700 points as oil hits $97

Indian stock markets opened sharply lower on Wednesday, extending recent volatility as geopolitical tensions and rising oil prices rattled investor confidence. The benchmark Sensex plunged over 700 points in early trading, while the Nifty index fell more than 185 points, with nearly all major sectoral indices trading in negative territory.

The sell-off followed reports of renewed military strikes in West Asia, contributing to a surge in global oil prices. Brent crude futures rose approximately 1 percent to approach $97 per barrel. Market analysts directly linked the decline to these developments, noting that escalating conflict threatens to sustain higher energy costs, which negatively impact India's trade balance, currency valuation, and corporate earnings.

This downturn interrupted a brief recovery seen on Tuesday, when both major indices had closed higher, led by gains in information technology stocks. The reversal underscores the market's acute sensitivity to external shocks, particularly fluctuations in crude oil. The Indian rupee also weakened, trading near 95.26 against the U.S. dollar, amid concerns over foreign portfolio investor outflows and the country's current...