The Indian benchmark indices declined sharply on Tuesday as the Sensex tumbled over 555 points to close at 75,577 and the Nifty ended more than 144 points lower to settle at 23,635 at 3:30 PM.
Previously, during the early morning session, the Sensex opened trading under 75,800, crashing more than 300 points, while the NSE Nifty50 stood below 23,700, taking a hit of almost 100 points, as of 9:15 AM.
Brent crude, the global oil benchmark, traded 0.54 per cent higher at USD 97.52 per barrel as rising crude prices and renewed US-Iran hostilities weighed on investor sentiment.
“Rising crude prices and renewed US–Iran hostilities kept risk appetite subdued,” Rajesh Palviya, Head of Research at Axis Direct, said.
Asian Markets Send Mixed Signals
Asian markets presented a mixed picture. South Korea’s Kospi, Japan’s Nikkei 225 index and Shanghai’s SSE Composite index quoted higher, while Hong Kong’s Hang Seng index traded lower.
US markets were closed on Monday for the Labour Day holiday.
“Global cues are mixed. US markets were closed overnight for the Labour Day holiday, while Asian markets are trading mixed this morning, with the unresolved geopolitical crisis and elevated crude oil prices remaining the dominant variables for investor sentiment,” Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a research analyst firm, said.
FIIs Turn Buyers
Foreign Institutional Investors (FIIs) bought equities worth Rs 280.13 crore on Monday, according to exchange data.
However, market sentiment remained cautious amid continuing geopolitical uncertainty.
“The geopolitical backdrop remains fragile as the US-Iran conflict shows few signs of easing. Uncertainty surrounding the Strait of Hormuz and the timing of its full reopening continues to underpin concerns over global oil supplies and broader market sentiment,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Sensex, Nifty Decline
The domestic benchmark indices ended lower on Monday.
The Sensex dropped 382.62 points, or 0.50 per cent, to settle at 76,132.81. The Nifty declined 118.55 points, or 0.50 per cent, to end at 23,779.15.
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