Mumbai, Mar 30 (PTI) Equity benchmark indices Sensex and Nifty tumbled in early trade on Monday as the ongoing war in West Asia continue to rattle markets globally, driving crude oil prices higher.
Unabated foreign fund outflows also added to the weakness in domestic equities.
The 30-share BSE Sensex tumbled 1,191.24 points to 72,391.98 in early trade. The 50-share NSE Nifty slumped 349.45 points to 22,470.15.
From the 30-Sensex firms, Axis Bank, Kotak Mahindra Bank, Bajaj Finserv, Bajaj Finance, Bharti Airtel and ICICI Bank were among the biggest laggards.
Bharat Electronics, Reliance Industries, Power Grid, Tata Consultancy Services and Hindustan Unilever were the gainers.
Brent crude, the global oil benchmark, jumped 2.32 per cent lower to USD 115.3 per barrel.
In Asian markets, South Korea’s benchmark Kospi and Japan’s Nikkei 225 index and Hong Kong’s Hang Seng index were quoting sharply lower, while Shanghai’s SSE Composite index traded in positive territory.
The US market ended significantly lower on Friday. The Nasdaq Composite index tanked 2.15 per cent, while Dow Jones Industrial Average lost 1.73 per cent and S&P 500 declined by 1.67 per cent.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 4,367.30 crore on Friday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 3,566.15 crore.
Foreign investors have pulled out Rs 1.14 lakh crore (about USD 12.3 billion) from domestic equities in March, making it the worst monthly outflow, weighed down by escalating tensions in West Asia, a weakening rupee and concerns over the impact of elevated crude oil prices on India’s growth.
“The pressure is largely external, as escalating geopolitical tensions and surging crude oil prices continue to dominate investor sentiment. Asian markets have opened with significant cuts, with South Korea’s Kospi and Japan’s Nikkei declining sharply.
“The broad-based weakness comes as the Middle East conflict enters its fifth week, with fresh escalation after Yemen’s Houthis reportedly launched missile strikes on Israel. This marks a widening of the conflict footprint and has heightened fears of prolonged instability in the region,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
On Friday, the Sensex tanked 1,690.23 points or 2.25 per cent to settle at 73,583.22. The Nifty dropped 486.85 points or 2.09 per cent to end at 22,819.60.
