- The Indian stock market sharply declined due to Middle East tensions.
- Rising crude prices contributed to subdued investor sentiment.
- Sensex fell over 600 points; Nifty50 also saw losses.
The domestic stock market traded sharply lower amid heightening tension in the Middle East and an escalation in crude prices. Key equity benchmark indices--Sensex and Nifty--traded over 0.8 per cent down in early trade amid subdued investor sentiment. BSE Sensex started the session with a huge gap down at 76,963.35 and dragged further to hit an early low at 76,857.43, down 0.80 per cent or 606 points from last day's closing of Rs 77,569.39.
Last seen, the 30-share index was trading at 77,124.27, down 0.57 per cent or 445.12 points. Nifty50 was quoted at 24,076.65, 0.54 per cent or 130.25 points.
Bearish sentiment in the Asian market dragged the Indian market as well.
"Indian markets opened with a gap-down as investor sentiment turned risk-averse following a fresh escalation in Middle East tensions. Recent U.S. military strikes on Iran, along with the continuing exchange of attacks across the Gulf region and the Strait of Hormuz, have heightened concerns over regional stability and further disruptions to global energy supplies, weighing on overall market sentiment," said Ponmudi R, CEO of Enrich Money.
Top Losers And Gainers
Indigo, Tata Steel, Maruti Suzuki, Bajaj Finserv, BEL, Ultratech Cement, Eternal, Sun Pharma, HDFC Bank, Bharti Airtel, L&T, and Hindustan Unilever were top losers from the Sensex basket. IT Majors,--TCS, HCL Tech, Tech Mahindra-- NTPC, PowerGrid and Axis Bank were trading in positive territory.
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Crude Price And International Market
Last seen, Brent crude, the global oil benchmark, was trading nearly 4 per cent higher at $79.02 per barrel. In Asian markets, South Korea's Kospi plummeted nearly 7 per cent amid a massive sell-off. At the same time, Japan's Nikkei 225, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index were doing business in negative territory. Meanwhile, US markets ended higher on Friday.
"From the market perspective, particularly for India, the price of crude is the crucial factor. There is no panic in the oil market like in March. Brent is currently trading around $79. So long as Brent trades below $90, the market won’t be impacted significantly. But if Brent shoots up to above $90, there can be a significant correction in the market. So, watch out for the price of crude," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.