Stock Market Closed: Indian markets suffered huge losses due to tension in Iran and America, Sensex slipped 1,677 points.
Mumbai. There was a huge fall in domestic stock markets on Wednesday due to a sharp rise in crude oil prices after US President Donald Trump’s announcement of ending the interim agreement with Iran. Benchmark index Sensex fell 1,677 points while Nifty fell 517 points. Analysts said that there was a ‘risk averse’ trend in the market due to concerns among investors regarding the forecast of weak results of companies in the first quarter.
BSE’s benchmark 30-share index Sensex fell 1,677.12 points, or 2.15 percent, to close at 76,503.60. At one point during trading, it fell 1,921.69 points to 76,259.03 points. Similarly, NSE’s 50-share standard index Nifty also fell by 516.65 points or 2.12 percent and closed at 23,882.05 points.
Shares of all 30 companies included in the Sensex closed with a decline. Shares of InterGlobe Aviation (IndiGo), Maruti, Hindustan Unilever, Bajaj Finance, Kotak Mahindra Bank and Mahindra & Mahindra were major losers.
After the US President’s announcement, crude oil rose again as the fear of increasing tension in West Asia became dominant. Global oil benchmark Brent crude rose 6.18 percent to $78.74 per barrel.
Ponmudi R, chief executive officer of online trading firm Enrich Money, said, “After Iran’s attack on cargo ships in the Strait of Hormuz, Trump declared the interim peace agreement over, which has again increased the geopolitical tension.
This development led to a rise in crude oil prices by about seven percent, which also affected the global financial markets.” Among other markets in Asia, South Korea’s Kospi fell 5.35 percent, while Japan’s Nikkei fell 2.11 percent and China’s Shanghai Composite fell 0.49 percent. However, Hong Kong’s Hang Seng rose 2.99 percent. There was a declining trend in European markets also in afternoon trading.
US markets closed in negative territory on Tuesday. According to stock market data, foreign institutional investors (FIIs) bought shares worth Rs 393.19 crore on Tuesday. Earlier on Tuesday, Sensex fell 104.35 points to 78,180.72 and Nifty fell 31.65 points to 24,398.70.
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