Indian stock markets witnessed a sharp decline as the Sensex and Nifty tumbled due to surging crude oil prices, continuous foreign fund outflows, and selling pressure in key banking stocks, reflecting investor concerns over global economic stability.
Photograph: Francis Mascarenhas/Reuters
Key Points
- Sensex and Nifty indices closed nearly 2% lower due to rising crude oil prices and geopolitical tensions.
- Sustained foreign fund outflows (FII selling) put significant pressure on the Indian stock market.
- Blue-chip bank stocks experienced heavy selling, contributing to the overall market decline.
- Brent crude oil prices surged by 5.76% to USD 92.86 per barrel, impacting market sentiment.
- Asian and European markets showed mixed performance, while US markets remained flat.
Stock market benchmark indices Sensex and Nifty ended nearly 2 per cent lower on Wednesday after a day’s breather following a spike in crude oil prices amid growing tensions in West Asia.
Besides, sustained foreign fund outflows and selling in blue-chip bank stocks also drove the markets lower.
The 30-share BSE Sensex tumbled 1,342.27 points or 1.72 per cent to settle at 76,863.71. During the day, it dropped 1,446.72 points or 1.84 per cent to 76,759.26.
The 50-share NSE Nifty tanked 394.75 points or 1.63 per cent to end at 23,866.85.
From the 30-Sensex firms, Bajaj Finance, Axis Bank, Bajaj Finserv, Mahindra & Mahindra, Maruti, Trent, Bharti Airtel and Kotak Mahindra Bank were among the major laggards.
Sun Pharma and NTPC were the gainers.
Impact of Crude Oil Prices and Foreign Investment
Brent crude, the global oil benchmark, jumped 5.76 per cent to USD 92.86 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,672.64 crore on Tuesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 6,333.26 crore.
Global Market Overview
In Asian markets, Japan’s Nikkei 225 index jumped 1.43 per cent and South Korea’s Kospi climbed 1.40 per cent. Shanghai’s SSE Composite index also ended in positive territory, while Hong Kong’s Hang Seng index settled lower.
