Mumbai, May 20: Benchmark equity indices tumbled in early trade on Wednesday due to elevated oil prices, weak global market trends and renewed fears of restart of military operations if Iran failed to reach a peace deal.
The 30-share BSE Sensex tanked 517.11 points to 74,667.51 in early trade. The 50-share NSE Nifty dropped 152.45 points to 23,475.80.
From the 30-Sensex firms, Tata Steel, Bharat Electronics, Mahindra & Mahindra, Maruti, Eternal and UltraTech Cement were among the major laggards.
Infosys, Tata Consultancy Services, Reliance Industries and Tech Mahindra were the winners.
Brent crude, the global oil benchmark, traded at USD 110.8 per barrel level.
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 quoted lower.
US markets ended lower on Tuesday.
“Broader Asian markets opened under pressure after renewed concerns emerged around potential escalation in the Middle East. Investor sentiment weakened following US President Donald Trump’s statement that he was an hour away from authorizing military action against Iran before eventually postponing the decision.
“The development has once again revived fears surrounding geopolitical instability, global energy supply disruptions, and volatility in crude oil markets,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
US President Donald Trump on Tuesday said he was an hour away from making a decision to restart attacks on Iran, but put it off after receiving a call from interlocutors, including Qatar and the UAE, on Tehran being “reasonable” in the peace talks.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,457.49 crore on Tuesday, according to exchange data.
US Vice President J D Vance has said Iran having an atomic weapon would trigger a “nuclear arms race” worldwide and asserted that the US was “locked and loaded” to restart military operations if Tehran failed to reach a peace deal.
“Sentiment across Indian markets is expected to remain fragile, with rising energy prices, currency weakness and uncertainty surrounding the Middle East conflict continuing to weigh on investor confidence,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
On Tuesday, the Sensex declined 114.19 points, or 0.15 per cent, to settle at 75,200.85. The Nifty dipped 31.95 points, or 0.14 per cent, to end at 23,618. (PTI)
