Sensex, Nifty dive over 1% on West Asia conflict
Stock market benchmark indices Sensex and Nifty tumbled over 1 per cent on Friday after a day’s breather as the conflict in the Middle East entered its seventh day, driving crude oil prices higher.Weakness in the US equities, subdued trend in European markets and relentless foreign fund outflows also dampened sentiments.The 30-share BSE Sensex tumbled 1,097 points, or 1.37 per cent, to settle at 78,918.90. During the day, it sank 1,203.72 points, or 1.50 per cent, to 78,812.18. The 50-share NSE Nifty dropped 315.45 points, or 1.27 per cent, to end at 24,450.45.
From the Sensex pack, Eternal, ICICI Bank, Axis Bank, UltraTech Cement, HDFC Bank, State Bank of India, Bajaj Finserv, and Larsen & Toubro were among the major laggards.Bharat Electronics, Reliance Industries, Sun Pharma, NTPC, Infosys, and HCL Tech were the gainers. Brent crude, the global oil benchmark, jumped 2.53 per cent to $87.57 per barrel.“Indian equity markets extended their decline following the prior session’s relief rally, as escalating US-Iran tensions disrupted key Middle Eastern oil and gas supplies, driving crude prices higher.
A sustained rise in oil prices could weigh on investor sentiment and adversely affect India’s twin deficits, inflation trajectory, and the RBI’s monetary stance,” Vinod Nair, Head of Research, Geojit Investments Ltd, said. In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended higher. Markets in Europe were trading in negative territory. The US market ended lower on Thursday. Foreign Institutional Investors (FIIs) offloaded equities worth INR 3,752.52 crore on Thursday, while Domestic Institutional Investors (DIIs) bought stocks worth INR 5,153.37 crore, according to exchange data.On Thursday, the Sensex rebounded 899.71 points, or 1.14 per cent, to settle at 80,015.90, snapping its four-day decline. The Nifty climbed 285.40 points, or 1.17 per cent, to end at 24,765.90, ending its three-day falling streak.
