Mumbai: Market benchmark indices Sensex and Nifty ended lower in a volatile trade Tuesday following a spike in crude oil prices amid reports of fresh US military operations in southern Iran.
The 30-share BSE Sensex declined 479.26 points, or 0.63 per cent, to settle at 76,009.70. During the day, it tanked 579.28 points, or 0.75 per cent, to 75,909.68.
The 50-share NSE Nifty dropped 118 points, or 0.49 per cent, to end at 23,913.70.
From the Sensex firms, Bharti Airtel, Trent, Tata Consultancy Services, Bajaj Finance, Titan and HDFC Bank were among the biggest laggards.
In contrast, Tech Mahindra, Eternal, Maruti and Adani Ports were among the winners.
Brent crude, the global oil benchmark, climbed 2.93 per cent to USD 98.96 per barrel.
US President Donald Trump Monday said negotiations with Iran to end the war were progressing “nicely”, but officials pointed out that a final decision may take some time due to the complex communication networks Tehran deploys to consult with its supreme leader.
“Markets initially traded with a stable undertone amid easing crude oil prices and supportive global cues. However, sentiment deteriorated sharply after reports of fresh US military strikes in Iran disrupted hopes of a near-term de-escalation in West Asia. The sudden shift in geopolitical sentiment triggered aggressive risk-off positioning across global markets and reignited fears of renewed energy supply disruptions,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
The sharp rebound in Brent crude prices once again became a key pressure point for Indian equities, he added.
“For an oil-import-dependent economy like India, rising crude prices immediately revive concerns around imported inflation, currency pressure, and widening fiscal stress,” Hariprasad added.
In Asian markets, South Korea’s benchmark Kospi ended higher, while Japan’s Nikkei, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng settled lower.
Markets in Europe were trading mostly lower.
“Near-term optimism around a potential US-Iran peace deal faded sharply following reports of US military operations in southern Iran, triggering a spike in crude prices and reversing the rupee’s brief appreciation,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
US markets were closed Monday for Memorial Day.
Foreign Institutional Investors (FIIs) bought equities worth Rs 821.75 crore Monday, according to exchange data.
In the previous session Monday, the Sensex jumped 1,073.61 points, or 1.42 per cent, to settle at 76,488.96. The Nifty surged 312.40 points, or 1.32 per cent, to end at 24,031.70.
PTI