On Wednesday, Indian stock markets experienced a significant downturn, driven by elevated bond yields and a surge in oil prices. These market dynamics were influenced by hawkish comments from the Federal Reserve and escalating tensions in the Middle East, leading to concerns over the continuation of high global interest rates.
Market sentiment was further strained by apprehension ahead of the upcoming general election results, anticipated next week.
The Lok Sabha exit poll results are expected to be announced after the conclusion of all seven phases, slated for June 1. The official results will be disclosed on June 4.
The benchmark S&P BSE Sensex plunged 667.55 points, or 0.89%, to close at 74,502.90, while the broader NSE Nifty index declined by 183.45 points, or 0.80%, ending at 22,704.70.
Notable decliners in the Nifty pack included Bajaj FinServ, Tata Consumer Products, Tech Mahindra, SBI Life, and HDFC Life, which saw drops of 2-3%.
Conversely, Hindalco surged by 3.5% following reports of its plans to raise $945 million through the Novelis U.S. IPO. Other gainers included Cipla, Bajaj Auto, Power Grid Corp, and Divis Laboratories, which rose between 1-2%.
Global market indicators remained subdued, with gold prices declining in response to hawkish Federal Reserve commentary and disappointing two-year and five-year note auctions.
Crude oil prices climbed for the fourth consecutive day, reaching a one-month high amid escalating Middle East tensions and anticipations that major oil producers will uphold production cuts during their upcoming meeting on Sunday.
