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Benchmark indices Sensex and Nifty fell in early trade on Wednesday after a day’s respite amid ongoing tensions in West Asia and continued outflow of foreign funds. The market also fell due to selling in blue-chip bank stocks. The rupee fell 4 paise to 91.89 against the US dollar in early trade. The Sensex fell 975.74 points or 1.25% to 77,230.24 by 11:50. Nifty fell 267.75 points or 1.10% to 23,993.85. In early trade, the 30-share BSE Sensex fell 96.12 points to 78,109.86. At the same time, the 50-share NSE Nifty fell 22.95 points to 24,238.65.
Condition of Sensex companies
Among the 30 Sensex companies, Kotak Mahindra Bank, ICICI Bank, Axis Bank, HDFC Bank, Hindustan Unilever and Bajaj Finserv were among the major laggards. InterGlobe Aviation, Adani Ports, Tata Steel and NTPC were among the gainers.
There is caution in the market
Ponmudi R, CEO of online trading and wealth tech firm Enrich Money, said that although stock markets saw a technical correction on Tuesday, the underlying sentiment remains cautious as the deepening crisis in West Asia is starting to impact global financial markets through rising energy prices, disruption of key shipping routes and changes in investors’ risk appetite. He further said that from an equity market perspective, such geopolitical turmoil could lead to intense bouts of volatility. The rounds arise as global investors turn to safe assets and reduce their exposure to risk-sensitive markets. Hariprasad K, Research Analyst and Founder, Livelong Wealth, said global cues remain mixed as investors are closely monitoring developments in West Asia and sharp fluctuations in crude oil prices.
There was a rise in Asian markets
In Asian markets, South Korea’s Kospi index climbed more than 3 percent, while Japan’s Nikkei 225 index traded up 2.5 percent. Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were also in positive territory. The US market closed with a stable trend on Tuesday.
The price of Brent crude fell to US $ 87.46 per barrel.
Global oil benchmark Brent crude fell 0.39 percent to US $ 87.46 per barrel. According to market exchange data, foreign institutional investors (FIIs) sold shares worth Rs 4,672.64 crore on Tuesday. However, domestic institutional investors (DIIs) bought shares worth Rs 6,333.26 crore. On Tuesday, the Sensex closed at 78,205.98, up 639.82 points or 0.82 per cent. Nifty ended 233.55 points or 0.97 per cent higher at 24,261.60.
