Stock markets drop in early trade on surging oil prices, West Asia tensions
Unabated foreign fund outflows add to the gloom
Stock market benchmark indices Sensex and Nifty declined in early trade on Tuesday as surging crude oil prices amid growing uncertainty about the fate of West Asia war dented investors’ sentiment.
Unabated foreign fund outflows also added to the gloom.
The 30-share BSE Sensex tumbled 824.44 points to 73,282.41 in early trade. The 50-share NSE Nifty dropped 248.95 points to 22,719.30.
From the 30-Sensex firms, InterGlobe Aviation, Eternal, Axis Bank, Mahindra & Mahindra, State Bank of India and Larsen & Toubro were the biggest laggards.
Tech Mahindra, HCL Tech, Bajaj Finance and Tata Consultancy Services were among the gainers.
Brent crude, the global oil benchmark, jumped 1.48 per cent to USD 111.4 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,167.17 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 8,088.70 crore.
In Asian markets, South Korea’s benchmark Kospi and Shanghai’s Composite index traded higher, while Japan’s Nikkei 225 index quoted lower. Markets were closed in Hong Kong for a holiday.
“Mixed messaging from US leadership and the absence of a concrete ceasefire framework continue to keep uncertainty elevated. Iran’s rejection of the US proposal and its counter-conditions suggest that negotiations remain fluid, keeping geopolitical risk firmly in play,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
US markets ended higher on Monday.
On Monday, the Sensex jumped 787.30 points or 1.07 per cent to settle at 74,106.85. The Nifty edged higher by 255.15 points or 1.12 per cent to end at 22,968.25.
