The Indian stock market experienced a steep fall on Wednesday. The BSE Sensex index plunged by 1,677 points and not even one out of the 30 stocks was in positive territory. The NSE Nifty fell by 516 points. Shares of oil marketing companies (OMC) tumbled by as much as 4.71%. There was a rise in crude oil prices owing to military tension in the Middle East region.

Shares of state-run oil companies declined sharply. HPCL recorded the steepest decline of 4.71% or ₹19.10 to close at ₹386. BPCL witnessed a decline of 3.31% or ₹10.41. The IOC fell by 3.2%.

According to reports, tensions in the Middle East have escalated again following US attacks on Iran. Previously, ships transiting the Strait of Hormuz were attacked, for which the US blamed Iran. In response, Iran launched missile attacks on US military bases in Bahrain and Kuwait.

Following the escalation of tensions, crude oil prices in the global market rose sharply. At 4 p.m., Brent crude oil rose $4.11 to $78.27 per barrel. WTI crude oil also rose 5.47 percent, or $3.85, to $74.29 per barrel.

Crude oil is the most important raw material for oil companies like HPCL, BPCL, and IOC. Rising prices also increase the cost of producing and refining fuel. If retail prices of petrol and diesel don't rise proportionately, these companies' profits could be pressured. Furthermore, higher crude oil increases India's import bill. If oil purchased at higher prices isn't resold at the same price, companies could face inventory losses.

The Indian stock market experienced a steep fall on Wednesday. The BSE Sensex index plunged by 1,677 points and not even one out of the 30 stocks was in positive territory. The NSE Nifty fell by 516 points. Shares of oil marketing companies (OMC) tumbled by as much as 4.71%. There was a rise in crude oil prices owing to military tension in the Middle East region.

Shares of state-run oil companies declined sharply. HPCL recorded the steepest decline of 4.71% or ₹19.10 to close at ₹386. BPCL witnessed a decline of 3.31% or ₹10.41. The IOC fell by 3.2%.

According to reports, tensions in the Middle East have escalated again following US attacks on Iran. Previously, ships transiting the Strait of Hormuz were attacked, for which the US blamed Iran. In response, Iran launched missile attacks on US military bases in Bahrain and Kuwait.

Following the escalation of tensions, crude oil prices in the global market rose sharply. At 4 p.m., Brent crude oil rose $4.11 to $78.27 per barrel. WTI crude oil also rose 5.47 percent, or $3.85, to $74.29 per barrel.

Crude oil is the most important raw material for oil companies like HPCL, BPCL, and IOC. Rising prices also increase the cost of producing and refining fuel. If retail prices of petrol and diesel don't rise proportionately, these companies' profits could be pressured. Furthermore, higher crude oil increases India's import bill. If oil purchased at higher prices isn't resold at the same price, companies could face inventory losses.