Mkts plummet nearly 2% amid worsening geopolitical cues

Mumbai: Equity benchmark indices Sensex and Nifty nosedived nearly 2 per cent on Monday as soaring crude oil prices and weak global trends due to the worsening situation in West Asia triggered a sharp sell-off in the stock market. Besides, unabated foreign fund exodus and the weakness in the rupee against the US dollar weighed heavily on investors’ sentiment, traders said.

The 30-share BSE Sensex tanked 1,352.74 points, or 1.71 per cent, to settle at 77,566.16, registering its second day of decline. During the day, the benchmark crashed 2,494.35 points, or 3.16 per cent, to 76,424.55. A total of 3,379 stocks declined, while 972 advanced and 185 remained unchanged on the BSE.

On similar lines, the 50-share NSE Nifty dropped 422.40 points, or 1.73 per cent, to end at 24,028.05. Intra-day, it tumbled 752.65 points, or 3.07 per cent, to 23,697.80.

“Selling intensified as the Middle East conflict entered its second week with no signs of de-escalation. The sustained rise in crude prices is likely to complicate the RBI’s policy outlook by keeping inflation elevated and posing risks to growth.

Additional concerns in the US about potential caps on redemptions in specific funds also contributed to the sell-off. “Despite this, the current phase may offer opportunities for long-term investors. Selective value buying in pharma and IT helped limit deeper losses and indicated a defensive stance amid a weakening rupee in the short term,” Vinod Nair, Head of Research, Geojit Investments Limited, said.

UltraTech Cement was the biggest loser in the Sensex pack, tumbling 5.23 per cent, followed by Maruti, Mahindra & Mahindra, State Bank of India, InterGlobe Aviation, and Adani Ports were among the major laggards. In contrast, Reliance Industries, Sun Pharma, Infosys, Tech Mahindra and HCL Tech were the gainers.

“Indian equity markets ended the session sharply lower after opening with a steep gap-down of nearly 3 per cent, as weak global cues and the deepening conflict in the Middle East weighed heavily on investor sentiment.

“The escalation in geopolitical risks pushed crude oil prices above the USD 100 per barrel mark and drove the Indian rupee to a record low against the US dollar, amplifying concerns around inflation and external balances,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

The BSE smallcap select index dived 2.11 per cent and the midcap select index tanked 2.08 per cent. All BSE sectoral indices ended lower.