Mumbai, Apr 23: Equity benchmark indices Sensex and Nifty tumbled in early trade on Thursday as crude oil prices once again breached the USD 100 per barrel mark amid stalled US–Iran negotiations.
Foreign fund outflows and weak trends in Asian equities also dragged the markets lower.
The 30-share BSE Sensex tumbled 532.83 points to 77,983.66 in opening trade. The 50-share NSE Nifty dropped 175.75 points to 24,202.35.
“Oil markets remain a key concern, with Brent crude once again breaching the USD 100 mark and trading in the USD 100–106 per barrel range. The move reflects stalled US–Iran negotiations and the continuation of blockades on Iranian ports, raising concerns over potential disruptions to global supply,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
From the 30-Sensex firms, Tech Mahindra, Eternal, InterGlobe Aviation, Mahindra & Mahindra, Asian Paints and Infosys were among the major laggards.
Sun Pharma and Power Grid were the only winners.
Brent crude, the global oil benchmark, traded 1.36 per cent higher at USD 103.3 per barrel.
“With total uncertainty becoming the new normal there is no clarity on the near-term direction of the market. With the duration of the war going beyond everyone’s initial expectations and the price of Brent crude bouncing back to USD 103 there is increasing risk to global growth in general and higher risk to India’s macros in particular,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,078.36 crore on Wednesday, according to exchange data.
In Asian markets, South Korea’s benchmark Kospi, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were trading lower.
“The primary overhang continues to be geopolitical developments in the Middle East. Recent escalation in the US–Iran situation, including reports of naval confrontations and renewed warnings of potential strikes, has significantly increased uncertainty. The risk surrounding the Strait of Hormuz—a critical global energy corridor—has pushed Brent crude prices above the USD 100 per barrel mark,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
US markets ended higher on Wednesday.
On Wednesday, the Sensex tanked 756.84 points or 0.95 per cent to settle at 78,516.49. The Nifty dropped 198.50 points or 0.81 per cent to end at 24,378.10. (PTI)
