Benchmark equity indices Sensex and Nifty fell sharply in early trading on Thursday, pressured by a surge in crude oil prices, weak global cues, and continued foreign fund outflows.
The 30-share BSE Sensex dropped 821.79 points to 76,674.57 in early deals, while the 50-share NSE Nifty 50 declined 287.3 points to 23,890.35.
Among Sensex constituents, major losers included InterGlobe Aviation, Eternal, UltraTech Cement, Mahindra & Mahindra, Axis Bank, and Adani Ports and Special Economic Zone. On the other hand, gainers included Bajaj Finance, Bajaj Finserv, Tech Mahindra, Infosys, and Power Grid Corporation of India.
Global oil benchmark Brent crude rose 4.08% to USD 122.8 per barrel, intensifying inflation concerns and weighing on investor sentiment.
"The markets opened today on a sharply negative note, reversing the recent recovery trend, as escalating geopolitical tensions weighed heavily on investor sentiment. The earlier optimism surrounding the temporary US-Iran ceasefire has faced after talks collapsed over the weekend, raising fears of a prolonged conflict and potential supply disruptions in the Middle East," said R Ponmudi, CEO, Enrich Money, an equity research and wealth tech company.
Foreign Institutional Investors (FIIs) were net sellers, offloading equities worth Rs 2,468.42 crore on Wednesday, as per exchange data.
Across Asia, markets showed a broadly negative trend. South Korea’s Kospi, Japan’s Nikkei 225, and Hong Kong’s Hang Seng Index traded lower, while China’s SSE Composite Index posted marginal gains.
In the US, equities ended mostly in the red on Wednesday. The Dow Jones Industrial Average closed lower as oil prices continued to climb. Meanwhile, the Federal Reserve kept interest rates unchanged, offering limited support to riskier assets.
According to market expert Hariprasad K, persistent geopolitical tensions—particularly those affecting supply chains—are dampening risk appetite and keeping markets highly reactive to news developments.
In the previous session on Wednesday, markets had closed on a positive note. The Sensex gained 609.45 points (0.79%) to finish at 77,496.36, while the Nifty advanced 181.95 points (0.76%) to settle at 24,177.65.
(With inputs from PTI)