Daijiworld Media Network – Mumbai
Mumbai, May 12: Equity benchmark indices opened sharply lower on Tuesday as rising crude oil prices and escalating uncertainty surrounding the West Asia conflict weighed heavily on investor sentiment.
Persistent foreign fund outflows further added pressure on the domestic markets during early trade.
The 30-share BSE Sensex plunged 525.44 points to 75,489.84, while the NSE Nifty declined 164.5 points to 23,651.35.
Among the major laggards on the Sensex were Tata Consultancy Services, Infosys, Tech Mahindra, HCL Technologies, Adani Ports and Bajaj Finserv. On the other hand, Bharti Airtel and NTPC emerged among the few gainers in early trade.
Global crude oil prices continued to rise amid geopolitical tensions, with Brent crude climbing 0.93 per cent to USD 105.2 per barrel.
Market experts said the continuing conflict between the United States and Iran has created uncertainty across global financial markets, triggering volatility in equities and commodities
“The ongoing US-Iran conflict continues to impact global sentiment and keep risk appetite subdued. Investors remain cautious as uncertainty over the duration and possible outcome of the conflict clouds market confidence,” said Ponmudi R, CEO of Enrich Money.
The market weakness also followed remarks by US President Donald Trump, who described the ceasefire with Iran as being on “massive life support” after rejecting Tehran’s latest proposal to end the prolonged conflict.
Foreign Institutional Investors (FIIs) continued their selling spree, offloading equities worth Rs 8,437.56 crore on Monday, according to exchange data.
In Asian markets, South Korea’s Kospi and China’s Shanghai Composite traded lower, while Japan’s Nikkei 225 and Hong Kong’s Hang Seng index showed gains.
US markets had ended in positive territory on Monday despite geopolitical concerns.
On Monday, the Sensex had crashed 1,312.91 points or 1.70 per cent to close at 76,015.28, while the Nifty dropped 360.30 points or 1.49 per cent to settle at 23,815.85.