Sensex, Nifty slip amid geopolitical tensions and FII outflows

Benchmark indices Sensex and Nifty turned lower after an initial rise amid geopolitical tensions following fresh US strikes in Iran and continued foreign fund outflows. Investors remained cautious over energy supply concerns and volatility in global markets and crude oil prices.

Mumbai: Benchmark indices Sensex and Nifty drifted lower after rising in early trade on Wednesday amid volatile trends in the equity market as investors remained cautious due to geopolitical uncertainties and fresh foreign fund outflows.

Fresh US military strikes in southern Iran have weakened hopes of an immediate diplomatic resolution, reviving concerns around energy supply disruptions, an expert said.

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The 30-share BSE Sensex climbed 127.83 points to 76,137.53 in early trade. The 50-share NSE Nifty went up by 36.45 points to 23,950.15.

However, both the benchmark indices failed to carry forward the momentum and were trading lower. The BSE benchmark traded 77.80 points down at 75,935.11, and the Nifty dipped 29.15 points to 23,897.80.

From the 30-Sensex firms, HDFC Bank, Bharat Electronics, Infosys, InterGlobe Aviation, Axis Bank and Reliance Industries were among the major laggards.

NTPC, Power Grid, Eternal and UltraTech Cement were among the winners.

Brent crude, the global oil benchmark, traded 1.56 per cent lower at USD 98 per barrel.

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

“Global sentiment remains fragile as geopolitical tensions in West Asia continue to dominate risk appetite. Fresh US military strikes in southern Iran have weakened hopes of an immediate diplomatic resolution, reviving concerns around energy supply disruptions,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

US markets mostly ended higher on Tuesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,407.87 crore on Tuesday, according to exchange data.

“Markets are increasingly recognising that, despite intermittent optimism around a possible agreement, the broader geopolitical backdrop remains fluid and vulnerable to sudden reversals. As a result, investors are likely to remain selective and cautious, with sentiment continuing to shift in response to geopolitical headlines and the evolving trajectory of negotiations,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.

FIIs have once again turned net sellers in recent sessions, highlighting persistent risk aversion towards emerging markets amid the fluid global backdrop, he added.

On Tuesday, the Sensex declined 479.26 points, or 0.63 per cent, to settle at 76,009.70. The Nifty dropped 118 points, or 0.49 per cent, to end at 23,913.70.