Worsening geopolitical cues drag mkts lower by nearly 2%
Mumbai: Equity benchmark indices Sensex and Nifty nosedived nearly 2 per cent on Monday as soaring crude oil prices and weak global trends due to the worsening situation in West Asia triggered a sharp sell-off in the stock market. Besides, unabated foreign fund exodus and the weakness in the rupee against the US dollar weighed heavily on investors' sentiment, traders said.
The 30-share BSE Sensex tanked 1,352.74 points, or 1.71 per cent, to settle at 77,566.16, registering its second day of decline. During the day, the benchmark crashed 2,494.35 points, or 3.16 per cent, to 76,424.55. A total of 3,379 stocks declined, while 972 advanced and 185 remained unchanged on the BSE. On similar lines, the 50-share NSE Nifty dropped 422.40 points, or 1.73 per cent, to end at 24,028.05. Intra-day, it tumbled 752.65 points, or 3.07 per cent, to 23,697.80.
"Selling intensified as the Middle East conflict entered its second week with no signs of de-escalation. The sustained rise in crude prices is likely to complicate the RBI's policy outlook by keeping inflation elevated and posing risks to growth. Additional concerns in the US about potential caps on redemptions in specific funds also contributed to the sell-off. "Despite this, the current phase may offer opportunities for long-term investors. Selective value buying in pharma and IT helped limit deeper losses and indicated a defensive stance amid a weakening rupee in the short term," Vinod Nair, Head of Research, Geojit Investments Limited, said.
