Indian stock markets witnessed a significant downturn as the Sensex and Nifty plummeted due to surging crude oil prices driven by geopolitical instability and persistent foreign capital outflows, sparking investor concerns.
Photograph: Francis Mascarenhas/Reuters
Key Points
- The Sensex plunged over 800 points due to rising crude oil prices and escalating geopolitical tensions in West Asia.
- Sluggish global market trends and persistent foreign capital outflows contributed to the negative investor sentiment in the Indian stock market.
- Brent crude oil prices surged by 4.78% to $96.47 per barrel, intensifying concerns over inflation and gas supply constraints.
- Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,267.31 crore, further impacting market performance.
- Mahindra & Mahindra, Maruti, and Bajaj Finance were among the top losers in the Sensex.
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 investors’ sentiment, analysts said.
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.
Similarly, the 50-share NSE Nifty fell 227.70 points, or 0.95 per cent, to close at 23,639.15.
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.
Brent crude, the global oil benchmark, jumped 4.78 per cent to $96.47 per barrel.
Impact of Geopolitical Tensions on Oil Prices and Market Sentiment
“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 $100 per barrel, intensifying concerns over inflation and gas supply constraints,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index ended lower.
Rupee Performance and Foreign Investment Trends
The rupee recovered from record-low levels and settled with a loss of 16 paise at 92.17 (provisional) against the US dollar on Thursday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,267.31 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DII) bought stocks worth Rs 4,965.53 crore.
