Equities sink as West Asia turmoil spirals

Mumbai: Equity benchmarks Sensex and Nifty wilted under selling pressure for the third straight day on Friday as rising crude prices raised concerns over inflationary pressures and global economic stability amid the widening conflict in West Asia.

Intense selling in global markets, unabated foreign fund outflows and continuing weakness in the rupee also dented investor sentiment.

The 30-share BSE Sensex tumbled 1,579.82 points, or 2 per cent, to 74,454.60 during intra-day trade. The benchmark finally settled at 74,563.92, down 1,470.50 points, or 1.93 per cent.

A total of 3,348 stocks declined, while 941 advanced and 132 remained unchanged on the BSE. The 50-share NSE Nifty tanked 488.05 points, or 2.06 per cent, to end at 23,151.10.

“The sharp correction has largely been driven by the surge in crude oil prices and rising macroeconomic concerns for energy-importing economies like India, Hariprasad K, Research Analyst and Founder, Livelong Wealth, said. The market capitalisation of BSE-listed firms slumped by Rs 10,24,181.74 crore to Rs 4,29,82,252.27 crore ($4.65 trillion) on Friday.

On the weekly front, the BSE benchmark tanked 4,354.98 points or 5.51 per cent, and the Nifty dropped 1,299.35 points or 5.31 per cent. Since February 27, the 30-share BSE Sensex has nosedived 6,723.27 points, or 8.27 per cent. During this time, the market valuation of BSE-listed companies eroded by Rs 33,68,419 crore to Rs 4,29,82,252.27 crore ($4.65 trillion).

“Sentiment remained fragile amid escalating geopolitical tensions in the Middle East, which have pushed crude oil prices close to the $100 per barrel mark and raised concerns over inflationary pressures and global economic stability.

“The situation has also triggered persistent foreign institutional investor outflows and weakness in the rupee, which slipped to record lows during the session, further weighing on market sentiment,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.

From the Sensex constituents, Larsen & Toubro plunged the most by 7.52 per cent, followed by Tata Steel, SBI, Bharat Electronics, Maruti, and UltraTech Cement. In contrast, Hindustan Unilever and Bharti Airtel were the gainers. The BSE midcap select index tanked 2.87 per cent, and the smallcap select index dropped 2.48 per cent.

“Metals and auto stocks were among the worst hit, as supply constraints and higher input costs are expected to hit business and profitability,” Vinod Nair, Head of Research, Geojit Investments Limited, said.