Mumbai: The impact of increasing tension in West Asia and sharp rise in crude oil prices was clearly visible on the domestic stock markets on Wednesday. Sensex fell by more than 500 points in early trade, while Nifty also declined. Investors' concerns have increased as the price of Brent crude in the international market approached $100 per barrel.
BSE Sensex fell 500.25 points to 75,060.61 in early trade. Similarly, NSE Nifty was seen trading at 23,506.10 points with a fall of 129.40 points.
Most pressure on IT shares
Among the 30 companies included in the Sensex, shares of HCL Tech, Tech Mahindra, Infosys, Tata Consultancy Services and Hindustan Unilever fell the most during early trading.
However, buying was also seen in some major stocks. NTPC, Larsen & Toubro, Power Grid and Adani Ports were trading with gains.
Brent crude reached $ 99.33 per barrel
The futures price of international oil standard Brent crude oil rose 1.44 percent to $ 99.33 per barrel. Crude oil prices have increased due to increasing tension between America and Iran and the fear of disruption of oil supply through the Strait of Hormuz.
The increase in crude oil prices is being considered a major reason for pressure on the stock market. In a major oil importing country like India, expensive crude could impact companies' costs and macroeconomic conditions.
Mixed trend in Asian markets
Trading was mixed in Asian markets on Wednesday. South Korea's Kospi, Japan's Nikkei 225 and China's SSE Composite were trading in gains, while Hong Kong's Hang Seng was in decline.
Earlier, American stock markets had closed with a decline on Tuesday.
FII also sold
According to stock market data, foreign institutional investors (FIIs) sold shares worth a net Rs 123.19 crore in the Indian stock market on Tuesday.
Earlier on Tuesday also the domestic market was under pressure. Sensex closed with a fall of 555.23 points and Nifty with a fall of 144.05 points.
In such a situation, the rising price of crude oil, tension in West Asia and selling by foreign investors were the main factors determining the direction of the market in the early trading on Wednesday.
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