Mkts bleed as Gulf war takes big toll
Mumbai: Stockmarket benchmark indices Sensex and Nifty nosedived over 1 per cent on Monday as investor sentiment was hit hard following a sharp spike in crude oil prices amid escalating tensions in West Asia. Weak trends in global markets and heavy foreign fund outflows also dented sentiment. Equity investors became poorer by Rs 6.59 lakh crore on Monday as markets faced a massive drubbing amid rising tensions in West Asia that weighed heavily on sentiments.
The 30-share BSE Sensex tanked 2,743.46 points or 3.37 per cent to 78,543.73 in early trade before recovering partially to close at 80,238.85, down 1,048.34 points or 1.29 per cent. The 50-share NSE Nifty tumbled 575.15 points or 2.28 per cent to 24,603.50 intraday and later settled at 24,865.70, down 312.95 points or 1.24 per cent.
From the Sensex pack, InterGlobe Aviation, Larsen & Toubro, Adani Ports, Maruti, Asian Paints and Bajaj Finserv were among the biggest laggards. Bharat Electronics, Sun Pharma and ITC were the only gainers. Brent crude, the global oil benchmark, surged 8.34 per cent to USD 78.95 per barrel after Iran’s Supreme Leader Ayatollah Ali Khamenei was killed in a coordinated US-Israeli airstrike on Tehran. Iranian state media confirmed the death on Sunday, following which Iran fired missiles at Israel and Arab countries in retaliation.
Asian markets remained under pressure with Japan’s Nikkei 225 falling over 1 per cent and Hong Kong’s Hang Seng tumbling more than 2 per cent, while Shanghai’s SSE Composite ended higher. European markets were trading sharply lower and US markets closed lower on Friday.
“Rising geopolitical tensions in the Middle East have unsettled global markets. Rising crude oil prices and a weakening INR reflect concerns over oil supply disruptions, inflationary pressures and strain on margins,” said Vinod Nair, Head of Research, Geojit Investments Ltd. India VIX edged higher, signalling increased uncertainty. Foreign Institutional Investors offloaded equities worth Rs 7,536.36 crore on Friday, while Domestic Institutional Investors bought stocks worth Rs 12,292.81 crore. Markets will remain closed on Tuesday for Holi.
