Mumbai, March 4 || The Indian equity markets opened sharply lower on Wednesday, tracking weak global cues and aggressive FII short positioning in index futures amid escalating geopolitical tensions in the Middle East.
As of 9.28 am, Sensex lost 1,773 points, or 2.21 per cent, to reach 78,465 and Nifty eased 549 points, or 2.21 per cent, at 24,316.
Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 declined 2.18 per cent, and the Nifty Smallcap 100 lost 2.17 per cent.
All sectoral indices traded in red except Nifty IT, up 0.27 per cent. Nifty metal and realty led losses, down 3.18 per cent and 3.04 per cent, respectively. Nifty auto dropped 2.97 per cent while oil and gas dropped 2.86 per cent.
Prolonged tensions among the United States, Israel, and Iran are mounting pressure on India across its current account, inflation outlook, and currency stability.
Elevated crude prices stand to raise the country's import bill, widen its current account deficit, weaken the rupee, stoke inflation, and trigger foreign capital outflows, said Devarsh Vakil, Head of Prime Research at HDFC Securities.
WTI crude climbed above $75 a barrel, extending a two-day gain of approximately 11 per cent. Brent traded near $81 a barrel as the widening Middle East conflict and shipping disruptions through the Strait of Hormuz kept supply risks firmly in focus.