Stock market fell due to uncertainty over Iran ceasefire, Sensex fell 931 points; bad condition of nifty
Mumbai. Local stock markets declined on Thursday after five days of rise. BSE Sensex fell 931 points while NSE Nifty fell 222 points. The market remained in loss amid uncertainty over the ceasefire in West Asia. Uncertainty over the ceasefire agreement has increased after Iran again closed the Strait of Hormuz in response to Israeli attacks on Lebanon.
Weak trend in other markets of Asia and Europe, rise in crude oil prices and continuous withdrawal of foreign institutional investors have also increased the concern of investors in the domestic market. BSE Sensex based on 30 shares fell 931.25 points or 1.20 percent to close at 76,631.65 points. During trading, it fell 1,215 points to 76,347.90.
NSE Nifty closed at 23,775.10, down 222.25 points or 0.93 percent. Among the Sensex stocks, InterGlobe Aviation, Larsen & Toubro, Eternal, HDFC Bank, ICICI Bank and Kotak Mahindra Bank were major losers. On the other hand, shares of Bharat Electronics, Power Grid, NTPC and Tata Consultancy Services rose. Global oil benchmark Brent crude rose 3.27 percent to $97.85 a barrel.
Among other markets in Asia, South Korea’s Kospi, Japan’s Nikkei, China’s Shanghai SSE Composite and Hong Kong’s Hang Seng closed with losses. There was a declining trend in afternoon trading in the major markets of Europe. Geojit Investments Ltd. Vinod Nair, head of research at , said, “The hope that was given by the ceasefire has now faded as the prices of crude oil have increased again due to the resurgence of US-Iran tensions and the ongoing sanctions on the Strait of Hormuz. This has also increased concerns about inflation in India.
“Domestically, profit-booking, rise in 10-year bond yields and depreciation of the rupee exchange rate reduced short-term risk appetite,” he said. The financial sector witnessed a decline after a strong rally in the previous session. The reason for this is the continuous selling by foreign institutional investors (FIIs).
According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 2,811.97 crore on Wednesday. However, domestic institutional investors (DIIs) bought shares worth Rs 4,168.17 crore. On Wednesday, Sensex had risen 2,946.32 points to 77,562.90 points while Nifty closed at 23,997.35 points with a gain of 873.70 points.
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