Mumbai Mumbai, Benchmark stock indices Sensex and Nifty closed more than 1 percent lower on Wednesday. This coincided with a weak trend in Asian markets as fighting intensified in West Asia, sending oil prices higher. Falling for the fourth consecutive session, the 30-share BSE Sensex fell 1,122.66 points or 1.40 per cent to close at 79,116.19. During the day, it fell 1,795.65 points or 2.23 percent to 78,443.20, but recovered some losses in the second half of the session. The 50-share NSE Nifty closed 385.20 points or 1.55 per cent lower at 24,480.50, marking its third consecutive session of losses and its lowest closing level in the last six months. It fell 560.3 points or 2.25 percent to 24,305.40 in intraday trading. In the Sensex pack, Tata Steel fell 6.76 per cent, followed by Larsen & Toubro (4.53 per cent). Bajaj Finance, UltraTech Cement, NTPC, InterGlobe Aviation, Bajaj Finserv and Kotak Mahindra Bank were also among the laggards. Bharti Airtel, Infosys and Tech Mahindra benefited.
Global oil benchmark Brent crude rose 3.08 percent to USD 83.91 per barrel. Global risk sentiment remained weak amid ongoing tensions in the Middle East and the closure of the Strait of Hormuz, causing oil prices to remain volatile. Indian equities also showed a strong risk-off environment due to the impact of inflation and the possibility of CAD rising. “Continued depreciation of INR also remains a major concern, while rising foreign outflows are adding short-term volatility to the market,” said Vinod Nair, Head of Research, Geojit Investments Ltd.
On Wednesday, the rupee fell to an all-time low of 92.35 against the US dollar due to rising crude oil prices. BSE Smallcap Select Index fell 2.42 percent and Midcap Select Index fell 2.10 percent. In sectoral indices, Metal fell 4 per cent, BSE PSU Bank (3.50 per cent), Industrials (3.29 per cent), Realty (3.16 per cent), Commodities (3.16 per cent). (3.12 percent), Capital Goods (2.64 percent), Power (2.59 percent), Services (2.25 percent) and Energy (2.23 percent). A total of 3,245 stocks declined on the BSE, while 1,053 advanced and 135 remained unchanged. Asian markets closed with heavy losses. South Korea’s Kospi fell 12 percent. Japan’s Nikkei 225, Shanghai’s SSE Composite Index and Hong Kong’s Hang Seng Index also closed significantly lower.
European markets were trading in positive territory. The US market closed in negative territory on Tuesday. The conflict in West Asia has escalated as Iran continues to attack several Gulf countries in retaliation for the joint attack by Israel and the US. The US and Israel have also launched new attacks on Iran. Foreign institutional investors (FIIs) sold equities worth Rs 3,295.64 crore on Monday, it was reported. To exchange data. However, domestic institutional investors (DIIs) bought stocks worth Rs 8,593.87 crore.
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