Mumbai, July 8 (IANS) Indian benchmark equity indices witnessed a sharp selloff on Wednesday, with the Sensex and Nifty falling more than 2 per cent each, as rising crude oil prices, weak global cues and renewed geopolitical tensions dented investor sentiment. The market decline gathered pace during the second half of the trading session after US President Donald Trump said that an interim agreement with Iran to end the conflict was "over", triggering fresh concerns over escalating tensions in the Middle East and their potential impact on global energy supplies.

During noon trade, the Nifty was down nearly 500 points, while the Sensex had declined more than 1,600 points. Broad-based selling was evident across the market, with 45 of the 50 Nifty constituents trading in the red. The sharp correction erased nearly Rs 4 lakh crore in investor wealth, with the combined market capitalisation of all companies listed on the BSE falling below Rs 476 lakh crore. The spike in crude oil prices, coupled with uncertainty surrounding developments in the Gulf region, added to the risk-off mood in global markets, prompting investors to pare exposure to equities.

Meanwhile, during morning trade, Sensex opened 364.27 points or 0.46 per cent lower at 77,816.45, while Nifty slipped 139.15 points or 0.57 per cent to 24,259.55. Among sectoral indices, Nifty Oil & Gas led the losses, declining more than 1 per cent during the opening session. Nifty Media, Nifty PSU Bank, Nifty Realty, Nifty Cement, Nifty Metal, Nifty Auto and Nifty FMCG also declined by up to almost 1 per cent during early trade.

--IANS