Stock markets decline amid surging oil prices, foreign fund outflows
Stock market benchmark indices Sensex and Nifty buckled under selling pressure on Tuesday as a sharp rally in oil prices and foreign fund outflows dented investors’ sentiment.
The 30-share BSE Sensex declined 416.72 points, or 0.54 per cent, to settle at 76,886.91. During the day, it lost 562.57 points, or 0.72 per cent, to 76,741.06.
The 50-share gauge NSE Nifty dropped 97 points, or 0.40 per cent, to end at 23,995.70. From the 30-Sensex firms, Axis Bank, HCL Tech, InterGlobe Aviation, Maruti, State Bank of India and ICICI Bank were among the biggest laggards.
In contrast, Reliance Industries, Bharti Airtel, Tech Mahindra and Sun Pharma were among the gainers.
Brent crude, the global oil benchmark, jumped 2.97 per cent to USD 111.4 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,151.48 crore on Monday, according to exchange data. “Indian equity markets traded under pressure, ending in the red as unresolved tensions in the Middle East and persistent disruptions to energy supply, particularly the continued closure of the Strait of Hormuz, weighed on investor sentiment,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
The sharp rise in crude oil prices above USD 110, continued disruption in the Strait of Hormuz, rupee depreciation beyond 94.5 and sustained FII outflows underscore mounting macroeconomic pressures on Indian markets, he added.
In Asian markets, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, and Hong Kong’s Hang Seng index ended lower, while South Korea’s benchmark Kospi settled higher. Markets in Europe were trading in positive territory.
US markets ended flat on Monday. On Monday, the Sensex jumped 639.42 points or 0.83 per cent to settle at 77,303.63. The Nifty climbed 194.75 points or 0.81 per cent to close at 24,092.70.
