The New Indian Express ·
Economy, business and finance
Markets decline amid West Asia conflict, concerns over possible US interest-rate hike
MUMBAI: Stock market benchmark indices Sensex and Nifty drifted lower in early trade on Monday as elevated crude oil prices, escalation in US-Iran hostilities and concerns over a possible US interest rate hike weighed on investors' sentiment.
The 30-share BSE Sensex dropped 172.77 points to 76,342.66 in early trade. The 50-share NSE Nifty declined 63.30 points to 23,832.60.
Among the 30 Sensex firms, Infosys, Tech Mahindra, HCL Tech, Tata Steel, Tata Consultancy Services and UltraTech Cement were among the major laggards.
Eternal, Bharti Airtel, Bharat Electronics and Larsen & Toubro were among the winners.
Brent crude, the global oil benchmark, traded 0.78 per cent higher at USD 97 per barrel.
"Friday's US jobs report came in far stronger than expected, reviving concerns over a possible interest-rate hike, while fresh attacks in the US-Iran conflict are keeping oil prices at elevated levels, posing a key overhang for domestic investor sentiment," Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a research analyst firm, said.
The next major catalyst comes on Friday with the release of US inflation data, which is expected to influence Federal Reserve rate expectations and, consequently, global risk sentiment, he added.
In Asian markets, South Korea's Kospi jumped 3.36 per cent, Japan's Nikkei 225 index climbed 1.83 per cent. Shanghai's SSE Composite index and Hong Kong's Hang Seng index was trading lower.
US markets ended in negative territory on Friday.
"Crude oil remains the dominant macro driver. WTI continues to trade at elevated levels around USD 91–92 per barrel as the latest escalation in US-Iran hostilities around the Strait of Hormuz keeps concerns over potential supply disruptions firmly in focus," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,111.94 crore on Friday, according to exchange data.
On Friday, the Sensex climbed 362.57 points, or 0.48 per cent, to settle at 76,515.43. The Nifty, however, saw a modest rise of 24.25 points, or 0.10 per cent, to end at 23,897.70.
