In early trade on Tuesday, equity benchmark indices extended their decline, driven by concerns over escalating tensions in the Middle East and subdued global cues. Foreign fund outflows and a rise in Brent crude oil prices added to the apprehension among investors.
Sensex and Nifty slump
The BSE Sensex, continuing its downward trajectory for the third consecutive day, plummeted by 585.63 points to 72,814.15. Likewise, the NSE Nifty fell by 168.65 points to 22,103.85.
Major laggards and gainers
IndusInd Bank, Infosys, Bajaj Finance, and Kotak Mahindra Bank were among the top losers from the Sensex basket. Conversely, Titan Company, Mahindra & Mahindra, and Nestle registered gains.
Global market trends
Asian markets, including Seoul, Tokyo, Shanghai, and Hong Kong, traded lower, following Wall Street’s negative performance on Monday.
Geopolitical concerns and oil prices
The market sentiment was influenced by heightened tensions between Iran and Israel, coupled with higher-than-expected inflation data. Global oil benchmark Brent crude climbed to USD 90.62 a barrel, adding to investor concerns.
Foreign fund outflows
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,268 crore on Monday, contributing to the market’s apprehensive mood.
Outlook and expert analysis
Analysts suggest that geopolitical tensions, particularly in the Middle East, are a significant concern for markets. The uncertainty surrounding potential responses to Iran’s attack on Israel raises apprehensions, keeping the market sentiment weak in the near term. The BSE benchmark closed at 73,399.78 on Monday, while the NSE Nifty settled at 22,272.50, reflecting the prevailing cautious sentiment among investors.
