Sensex, Nifty fall in early trade as financial stocks drag

Benchmark indices Sensex and Nifty opened lower on Friday as financial stocks declined and crude oil prices rose. Investor sentiment remained cautious amid geopolitical concerns, while global markets delivered mixed cues following losses on Wall Street

Mumbai: Market benchmark indices Sensex and Nifty declined in early trade on Friday, dragged down by financial stocks and rising crude oil prices.

The 30-share BSE Sensex declined 235.36 points to 78,699.80 in early trade. The 50-share NSE Nifty fell 24.30 points to 24,608.25.

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From the Sensex pack, Bajaj Finance, Bajaj Finserv, Trent, ICICI Bank, Bharti Airtel and Eternal were among the major laggards.

Tata Consultancy Services, Tech Mahindra, HCLTech and Infosys were among the gainers.

Brent crude, the global oil benchmark, traded 1.16 per cent higher at USD 83.45 per barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 17.86 crore on Thursday, according to exchange data.

“Overnight, Wall Street retreated after recent record highs as investors reduced exposure to risk assets amid renewed concerns over energy prices and geopolitical uncertainty. The rise in crude oil prices followed growing doubts over the pace and outcome of diplomatic negotiations involving Iran and the Strait of Hormuz, reviving concerns that disruptions to one of the world’s most critical energy corridors could persist for longer than previously anticipated,” Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a research analyst firm, said.

Benchmark indices have been witnessing divergence since Monday after stock exchanges introduced a new auction mechanism for shares with futures and options (F&O) contracts.

The Closing Auction Session (CAS) in the equity cash segment became operational on Monday, introducing a new auction-based mechanism for determining the closing prices of eligible stocks in a move aimed at making the price discovery process more transparent and robust.

In Asian markets, South Korea’s KOSPI and Japan’s Nikkei 225 index traded lower, while Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were trading higher.

US markets ended lower on Thursday.

On Thursday, the Sensex climbed 373.76 points, or 0.48 per cent, to settle at 78,954.76. The Nifty traded in a narrow range throughout the day and edged marginally higher by 11.35 points, or 0.05 per cent, to close at 24,636.