Mumbai: Benchmark equity indices Sensex and Nifty ended lower for the fourth consecutive session Friday as crude oil prices breached the USD 114 level amid escalating tensions in West Asia, keeping investors on edge.
A broad-based selling across sectors and FII outflows amid weak global trends also dampened investor sentiment.
The 30-share BSE Sensex opened higher but later plunged 797.02 points, or 1.08 per cent, to hit an intraday low of 72,452.37. It later recouped some losses to settle at 73,123.83, down 125.56 points, or 0.17 per cent.
The 50-share NSE Nifty dropped 87.65 points, or 0.39 per cent, to close at 22,600 after tumbling 315.65 points, or 1.39 per cent, to a low of 22,372.
Tata Steel and Adani Ports fell over 3 per cent, emerging as the biggest laggards among the Sensex firms.
Trent, Tech Mahindra, Bharat Electronics Ltd, IndiGo, Bajaj Finserv, Kotak Mahindra Bank, Titan, Bajaj Finance, NTPC, State Bank of India and Hindustan Unilever also traded lower.
In contrast, Eternal, Larsen & Toubro, Reliance Industries, Tata Consultancy Services, UltraTech Cement, Asian Paints, Maruti Suzuki India, Infosys, and ICICI Bank were among the gainers.
Brent crude, the global oil benchmark, climbed 1.10 per cent to trade above USD 114.42 per barrel.
“Market sentiment remained fragile as concerns over supply disruptions in global energy markets overshadowed selective buying in IT stocks. Brent crude approached USD 114 per barrel amid rising West Asia tensions, increasing concerns about inflation, the rupee and corporate margins,” said Gaurav Garg, Head of Research at brokerage platform Lemonn.
Vinod Nair, Head of Research at Geojit Investments Ltd, said, “The key concern in today’s market is the disproportionately sharp correction in mid- and small-caps relative to the Nifty. Valuation concerns and unwinding of leveraged positions, combined with surging crude prices and weak global cues, have intensified pressure on the broader market.”
“The rise in India VIX also indicates that near-term volatility will persist. Continued Middle East tensions could keep crude prices high, while the AI-led global equity sell-off continues to weigh on risk appetite,” Nair added.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,458.70 crore on Thursday, while Domestic Institutional Investors (DIIs) bought shares worth Rs 2,891.32 crore, according to the exchange data.
Asian markets recovered from early losses to settle largely higher, with Shanghai’s SSE Composite Index, Hong Kong’s Hang Seng and South Korea’s Kospi ending in the positive territory. Japan’s Nikkei 225 benchmark, however, closed lower.
European markets were trading in the negative territory Friday. US equity markets ended lower in overnight deals Thursday.
On Thursday, the 30-share BSE Sensex declined 460.30 points to close at 73,249.39, while the broader NSE Nifty dropped 123.70 points to settle at 22,687.65, extending their slide to the third day.
