Mumbai, May 18: Benchmark indices Sensex and Nifty tumbled in early trade on Monday amid surging oil prices, weak global market trends after fresh escalation in tensions in West Asia.
A drone attack targeted the Barakah nuclear facility in the United Arab Emirates (UAE) on Sunday, marking a dangerous escalation in the West Asia conflict.
The 30-share BSE Sensex tanked 833.20 points to 74,404.79 in early trade. The 50-share NSE Nifty dropped 234 points to 23,401.70.
From the 30-Sensex firms, Tata Steel, Power Grid, Maruti, Trent, Titan and HDFC Bank were the biggest laggards.
Infosys, Tech Mahindra, Bharti Airtel and Tata Consultancy Services were the winners.
Brent crude, the global oil benchmark, traded 1.79 per cent higher at USD 111.2 per barrel.
“Brent crude has spiked to USD 111 on absence of initiatives to open the Strait of Hormuz,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
In Asian markets, Japan’s benchmark Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index quoted lower, while South Korea’s benchmark Kospi traded in positive territory.
US markets ended over 1 per cent lower on Friday.
“Global risk appetite weakened sharply after fresh escalation fears emerged in the Middle East. US President Donald Trump’s warning urging Iran to ‘get moving, FAST’ has once again revived concerns around a possible disruption in global crude oil supply routes, particularly around the Strait of Hormuz,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
For Indian markets, the biggest concern continues to remain elevated crude oil prices and currency pressure, he added.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,329.17 crore on Friday, according to exchange data.
“US President Donald Trump issued a fresh warning stating that the ‘clock is ticking for Iran’, signaling growing impatience over the pace of negotiations and increasing uncertainty surrounding the ongoing US–Iran situation and the Strait of Hormuz. This continues to remain a key overhang for global financial markets,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
On Friday, the Sensex dropped 160.73 points, or 0.21 per cent, to settle at 75,237.99. The Nifty settled lower by 46.10 points, or 0.19 per cent, at 23,643.50, snapping its two-day gaining streak. (PTI)
