Markets slump on heightened tensions in Middle East; Sensex drops 500 pts
Mumbai: Stock market benchmark indices Sensex and Nifty tumbled Monday, as intensifying tensions in the Middle East after the US bombed three major nuclear sites in Iran unnerved investors.
After losing over 900 points in day trade, the 30-share index recovered some lost ground to close with a loss of 511.38 points or 0.62 per cent at 81,896.79.
During the day, it tumbled 931.41 points or 1.13 per cent to 81,476.76.
The 50-share NSE Nifty dropped 140.50 points or 0.56 per cent to 24,971.90.
The US bombed three major nuclear sites — Fordow, Natanz and Isfahan — in Iran, directly engaging itself in the Israel-Iran conflict.
From the Sensex pack, HCL Tech, Infosys, Larsen & Toubro, Mahindra & Mahindra, Hindustan Unilever, ITC, Tata Consultancy Services and Maruti were the biggest laggards.
In contrast, Trent, Bharat Electronics, Bajaj Finance and Kotak Mahindra Bank were among the gainers.
In Asian markets, South Korea’s Kospi and Japan’s Nikkei 225 index settled lower, while Shanghai’s SSE Composite index and Hong Kong’s Hang Seng ended higher.
European markets were trading lower in mid-session.
US markets ended mostly lower Friday.
Global oil benchmark Brent crude climbed 0.49 per cent to USD 77.39 a barrel.
“Last Friday, markets buildup in anticipation of easing Middle East tensions, following the US announcement of a two-week window to deliberate its involvement in the Israel-Iran conflict. However, the unexpected US airstrike on Iran’s nuclear facilities over the weekend disrupted those expectations, triggering a sharp rise in crude oil prices and leading to consolidation in the domestic equity market,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Despite the initial setback, the market recovered some of its losses, supported by gains in capital goods and metal stocks, as fears of an immediate oil supply disruption remained low, he added.
Foreign Institutional Investors (FIIs) bought equities worth Rs 7,940.70 crore on Friday, according to exchange data.
On Friday, the 30-share BSE Sensex surged 1,046.30 points or 1.29 per cent to settle at 82,408.17. The Nifty climbed 319.15 points or 1.29 per cent to 25,112.40.
PTI
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