Stock markets dive over 2 per cent amid uncertainties, rising crude prices
Equity benchmark indices Sensex and Nifty tumbled over 2 per cent on Friday after a two-day rally, in tandem with a weak trend in global peers, as the US-Iran conflict continues to be the crucial overhang for markets, raising doubts about a de-escalation of the war.Crude oil prices staying above the $100 per barrel mark, the rupee’s free fall and unabated foreign fund outflows also added to the gloom.
The 30-share BSE Sensex tanked 1,690.23 points, or 2.25 per cent, to settle at 73,583.22. During the day, it plunged 1,739.04 points, or 2.31 per cent, to 73,534.41.
The 50-share NSE Nifty dropped 486.85 points, or 2.09 per cent, to end at 22,819.60. From the 30-Sensex firms, Reliance Industries dropped the most by 4.55 per cent, followed by InterGlobe Aviation, Bajaj Finance, State Bank of India, Eternal and HDFC Bank. In contrast, Tata Consultancy Services, Bharti Airtel and Power Grid were the gainers. Brent crude, the global oil benchmark, jumped 1.72 per cent to $109.9 per barrel.The rupee tanked 86 paise to close at yet another all-time low of 94.82 (provisional) against the US dollar
on Friday. In Asian markets, South Korea’s benchmark Kospi and Japan’s Nikkei 225 index ended lower, while Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index settled in positive territory. Markets in Europe were trading in the red.The US market ended sharply lower on Thursday.
“Profit booking set in after the recent two-session rally as the rupee fell to an all-time low amid sustained FII selling, while escalating tensions in the Middle East heightened caution among investors ahead of the weekend,” Vinod Nair, Head of Research, Geojit Investments Limited, said. Stock markets were closed on Thursday on account of Ram Navami.
Foreign Institutional Investors (FIIs) offloaded equities worth INR 1,805.37 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth INR 5,429.78 crore. “Indian markets witnessed a sharp and uneasy session, with heavyweight energy stocks leading the decline amid a complex mix of policy changes, rising crude prices, and persistent geopolitical uncertainty.
“Adding to the pressure, the Indian rupee weakened further to record lows against the US dollar, underscoring the macro stress building beneath the surface,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.On Wednesday, the Sensex jumped 1,205 points or 1.63 per cent to settle at 75,273.45. The Nifty surged 394.05 points or 1.72 per cent to end at 23,306.45.
