Indian stock markets are experiencing a sharp decline, with the Sensex and Nifty tumbling due to geopolitical tensions, surging oil prices, and persistent foreign fund outflows, creating uncertainty for investors.
Photograph: Danish Siddiqui/Reuters
Key Points
- Sensex and Nifty plummeted due to escalating conflict in West Asia and surging oil prices, impacting investor sentiment.
- Global market sell-offs and continuous foreign fund outflows exacerbated the decline in Indian stock markets.
- Heavy losses were observed in major Sensex firms like Larsen & Toubro, Tata Steel, and SBI, contributing to the overall market downturn.
- Rising Brent crude oil prices, exceeding $00 per barrel, added pressure to the already volatile market conditions.
- Foreign Institutional Investors (FIIs) offloaded equities worth Rs 7,049.87 crore, further contributing to the market’s downward spiral.
Stock market benchmark indices Sensex and Nifty ended sharply lower on Friday, propelled by heightening conflict in West Asia and surging oil prices.
Besides, heavy selling in global markets, persistent foreign fund outflows and weakness in the rupee also dented investors’ sentiment.
Declining for the third day running, the 30-share BSE Sensex tumbled 1,579.82 points, or 2 per cent, to 74,454.60 during intra-day trade.
The benchmark finally settled at 74,563.92, down 1,470.50 points, or 1.93 per cent.
The 50-share NSE Nifty tanked 488.05 points, or 2.06 per cent, to end at 23,151.10.
The gainers and losers
From the 30 Sensex firms, Larsen & Toubro, Tata Steel, SBI, Bharat Electronics, Maruti, and UltraTech Cement were among the prominent laggards.
Hindustan Unilever and Bharti Airtel were the gainers.
Brent crude, the global oil benchmark, climbed 0.25 per cent to $100.7 per barrel.
In Asian markets, South Korea’s benchmark Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended lower.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 7,049.87 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs) however, bought stocks worth Rs 7,449.77 crore.
Market Analyst Insights
“With the heightened uncertainty surrounding the West Asian conflict continuing, globally markets are weak and in unchartered territory. Weakness in the US markets indicate that rebound in the market is some time away. With Brent crude around $100, bulls are on the defensive.
“With the FIIs persisting with their sustained selling strategy, even large-cap blue-chips are under pressure,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
