Markets tumble nearly 1.5% on heavy selling in blue-chip stocks
Tumbles nearly 1.5% following an across-the-board sell-off amid escalating geopolitical tensions between the US and Iran
Mumbai:Benchmark Sensex tumbled 1,236 points or 1.5 per cent while Nifty closed near 25,450 following an across-the-board sell-off amid escalating geopolitical tensions between the US and Iran. Halting the three-day gaining streak, the 30-share BSE Sensex tumbled 1,236.11 points, or 1.48 per cent, to settle at 82,498.14. During the day, the benchmark nosedived 1,470.05 points, or 1.75 per cent, to hit an intraday low of 82,264.20.
The 50-share NSE Nifty slumped 365 points, or 1.41 per cent, to close at 25,454.35. In the intraday session, the broader NSE Nifty tanked 430.6 points, or 1.66 per cent to hit a low of 25,388.75, as 47 of its components ended in the red while three closed in the positive zone.
Among the Sensex constituents, IndiGo, Mahindra & Mahindra, UltraTech Cement, Trent, Bharat Electronics Ltd, Adani Ports, Kotak Mahindra Bank, Reliance Industries, Tech Mahindra, ITC, Eternal and PowerGrid were the major laggards.
"The bears took charge of the Indian market as rising geopolitical tensions between the US and Iran unsettled global sentiment, leading to a broad-based sell-off," Vinod Nair, Head of Research, Geojit Investments Ltd, said.
He added that Brent crude surged to its year-to-date high, exacerbating inflationary concerns and triggering heightened market volatility due to the fear of the bottlenecking of the Strait of Hormuz.
"At the same time uncertainty surrounding the US Fed's rate-cut trajectory and continued weakness in the INR impacted the domestic market. Sell-off intensified due to low FII participation because of Lunar New Year holiday across key Asian markets and a non-settlement day on account of a regional banking holiday in India," Nair said.
A total of 2,927 stocks declined, while 1,276 advanced and 164 remain unchanged on the BSE.Broaders indices ended lower, with the BSE Midcap Select Index declining 1.71 per cent, while Smallcap Select Index fell 0.98 per cent.
