The New Indian Express ·
Economy, business and finance
Sensex tumbles 813 points to 3-month low amid escalating tensions in West Asia, oil price surge
MUMBAI: Falling for the third straight day, benchmark stock index Sensex tumbled 813 points to a three-month low, and the Nifty settled below 23,450 following selling in IT, FMCG, financial services and oil & gas shares, as escalating tensions in West Asia drove crude oil to over USD 100 per barrel.
The 30-share BSE Sensex tanked 813.35 points, or 1.08 per cent, to settle at the day's low of 74,764.23, also the lowest closing level in nearly three months.
The 50-share NSE Nifty declined 203.60 points, or 0.86 per cent, to end at a nearly three-month low of 23,431.50. The index had closed near this level on June 11 previously.
Among the 30 Sensex firms, HCL Tech fell the most, down 4.55 per cent. Infosys dropped 4.43 per cent, Tech Mahindra by 3.87 per cent, and Tata Consultancy Services by 2.26 per cent. HDFC Bank and Hindustan Unilever were also among the major laggards.
Adani Ports was the lead gainer, rising by 3.67 per cent . Tata Steel, Trent and NTPC were among the winners.
Brent crude, the global oil benchmark, jumped 2.67 per cent to USD 100.5 per barrel.
"Indian equity markets extended their decline for a third consecutive session, with benchmark indices ending firmly lower as persistent selling pressure and a broad risk-off mood kept sentiment subdued. Elevated crude oil prices, lingering geopolitical tensions and a sharp rise in market volatility continued to weigh on investor confidence, reinforcing the market's prevailing bearish undertone," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
India VIX climbed more than 6 per cent, reflecting increased hedging activity and growing caution over the near-term outlook, he added.
The BSE SmallCap Select index declined 0.59 per cent and the MidCap Select index dipped 0.52 per cent.
Among the BSE sectoral indices, IT tanked the most by 3.21 per cent, followed by Focused IT (2.99 per cent), Realty (2.01 per cent), Insurance (1.49 per cent), Housing Finance (1.39 per cent), Top 10 Banks (1.03 per cent) and Bankex (0.74 per cent).
Commodities, Energy, Utilities, Hospitals, Metal, Power and Services were the winners.
"Indian equities extended their decline for a third consecutive session as Brent crude approached the USD 101-a-barrel mark, with escalating Middle East tensions fuelling concerns over inflation, the rupee and India's external balance. The market opened sharply lower and remained under pressure throughout the session as crude decisively breached the psychologically important USD 100 level," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a Research Analyst firm, said.
In Asian markets, South Korea's Kospi and Shanghai's SSE Composite index ended higher, while Japan's Nikkei 225 and Hong Kong's Hang Seng index settled lower.
Markets in Europe were trading lower. US markets ended in negative territory on Tuesday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 123.19 crore on Tuesday, according to exchange data.
On Tuesday, the Sensex dropped 555.23 points, or 0.73 per cent, to settle at 75,577.58. The Nifty declined 144.05 points, or 0.61 per cent, to end at 23,635.10.
