The domestic markets traded lower on Wednesday as a fresh escalation in the West Asia conflict had Brent crude hurtling toward $100 per barrel, a pain point for the world's third-largest crude oil importer.
At 9:30 a.m., the Sensex was down 510.89 points or 0.7% at 75,066.69, while the broader Nifty declined to 23,514.25, down 120.85 points or 0.5 percent.
1) Rise in crude prices: Brent crude futures jumped 1.5% to $99.5 per barrel. Higher oil prices threaten to widen the trade deficit, fuel inflation, and weigh on growth in India.
2) Geopolitical concerns: The West Asia war intensified with Iranian-backed Houthis in Yemen launching strikes on several Saudi cities, further embroiling a U.S. ally in the conflict, while U.S. forces hit multiple Iranian oil tankers and Iran struck a U.S. base in Jordan.
3) FII selling: The foreign institutional investors (FIIs) turned net sellers on September 8, offloading Indian equities worth Rs 123 crore.