Equities fall around 1% after Iran attacks key shipping routes

Mumbai: Benchmark equity indices ended with deep cuts on Thursday, with the Sensex tumbling over 800 points amid a sharp rise in crude oil prices due to the heightening crisis in West Asia.Besides, sluggish global market trends, weakness in the rupee and persistent foreign capital outflows also rattled investor sentiment, analysts said.

In a volatile session, the 30-share BSE Sensex tanked 829.29 points, or 1.08 per cent, to settle at 76,034.42. During the day, it plunged 992.53 points or 1.29 per cent to 75,871.18.A total of 2,516 stocks declined, while 1,713 advanced and 175 remained unchanged on the BSE.Similarly, the 50-share NSE Nifty fell 227.70 points, or 0.95 per cent, to close at 23,639.15.

“Geopolitical tensions in the Middle East continue to dampen global risk appetite, as fresh attacks on oil-shipping vessels have pushed crude prices closer to USD 100 per barrel, intensifying concerns over inflation and gas supply constraints.

”The market is witnessing broad-based consolidation, although selective buying has emerged in renewables and utility stocks. In the near term, sustained risk-off sentiment and ongoing FII outflows are likely to keep both equities and the rupee under pressure,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

However, the premium valuation of India has narrowed during the year, making it highly investable for a long-term investor, thus reducing the downside risk, he added.Mahindra & Mahindra was the biggest loser among the Sensex constituents, dropping 4.23 per cent, followed by Maruti, Bajaj Finance, Larsen & Toubro, UltraTech Cement and Trent.

In contrast, NTPC, Power Grid, Tech Mahindra, HCL Tech and Reliance Industries were the winners.The BSE smallcap select index declined 0.65 per cent, and the midcap select index dipped 0.55 per cent.

Among BSE sectoral indices, auto tanked 2.92 per cent, FMCG (1.62 per cent), consumer discretionary (1.59 per cent), realty (1.53 per cent), private banks index (1.45 per cent) and top 10 banks (1.29 per cent).On the other hand, utilities jumped 3.31 per cent, power (2.51 per cent), energy (1.06 per cent), capital goods (0.55 per cent), oil & gas (0.52 per cent) and metal (0.45 per cent).

“The lack of de-escalation signs in Middle East geopolitical tensions continued to unsettle global markets and push crude oil prices higher.”

Oil prices have surged again after the recent dip and are hovering around the USD 97 mark, raising concerns over inflationary pressures, currency weakness and the potential impact on India’s trade balance. Additionally, elevated volatility further dampened risk appetite among market participants,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.