Stock markets suffer major meltdown
Stock market benchmark indices Sensex and Nifty nosedived over 1 per cent on Monday as investors’ sentiment were hit hard following a sharp spike in crude oil prices amid escalating tensions in West Asia.Weak trends in global markets and heavy foreign fund outflows also dented sentiments.
The 30-share BSE Sensex tanked 2,743.46 points or 3.37 per cent to 78,543.73 in early trade. It later ended at 80,238.85, down 1,048.34 points or 1.29 per cent.The 50-share NSE Nifty tumbled 575.15 points or 2.28 per cent to 24,603.50 in intra-day trade. The benchmark later settled 312.95 points or 1.24 per cent down at 24,865.70.
From the Sensex pack, InterGlobe Aviation, Larsen & Toubro, Adani Ports, Maruti, Asian Paints, and Bajaj Finserv were among the biggest laggards. Bharat Electronics, Sun Pharma and ITC were the only gainers.Brent crude, the global oil benchmark, jumped 8.34 per cent to $78.95 per barrel. Iran’s Supreme Leader Ayatollah Ali Khamenei was killed in a coordinated US-Israeli airstrike on Tehran early Saturday, with the Iranian state media confirming the death on Sunday. Iran began firing missiles at Israel and the Arab countries in the region in retaliation for the killing of its supreme leader.
In Asian markets, Japan’s Nikkei 225 fell over 1 per cent and Hong Kong’s Hang Seng index tumbled more than 2 per cent, while Shanghai’s SSE Composite index ended in positive territory. Equity markets were closed in South Korea due to a holiday.
Markets in Europe were trading sharply lower.The US market ended lower on Friday. “Rising geopolitical tensions in the Middle East have unsettled global markets, with concerns over possible extension of the situation given the killing of Iran’s supreme leader.“Rising crude oil prices and a weakening INR reflect concerns over potential disruptions to oil supply, which could increase inflationary pressures in India and impact fiscals and strain margins for energy and chemical-dependent sectors,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.
The India VIX has edged higher, signalling increased uncertainty and risk aversion among market participants, he added.Foreign Institutional Investors (FIIs) offloaded equities worth INR 7,536.36 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth INR 12,292.81 crore. On Friday, the Sensex tanked 961.42 points or 1.17 per cent to settle at 81,287.19. The Nifty tumbled 317.90 points or 1.25 per cent to end at 25,178.65. Equity markets would remain closed on Tuesday for Holi.
