Stock markets slump in early trade on rising tensions in West Asia, higher oil prices

Benchmark indices Sensex and Nifty fell sharply in early trade as escalating West Asia tensions pushed crude oil prices higher, dampening investor sentiment. Weak Asian markets added pressure, while IT stocks gained despite broad-based selling across domestic equities

Mumbai: Benchmark indices Sensex and Nifty slumped in early trade on Monday amid escalating tensions in West Asia and rising crude oil prices.

Bearish trend in Asian peers also dragged the domestic markets lower.

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After two days of rally, the 30-share BSE Sensex tanked 616.15 points to 76,946.97 in early deals. The 50-share NSE Nifty dropped 190.50 points to 24,015.

From the Sensex pack, InterGlobe Aviation, Tata Steel, Maruti, Asian Paints, HDFC Bank and Bajaj Finserv were among the major laggards.

Tata Consultancy Services, NTPC, HCL Tech and Power Grid were the gainers.

Brent crude, the global oil benchmark, quoted 3.96 per cent higher at USD 79.02 per barrel.

The escalation in geopolitical tensions has triggered a sharp rebound in crude oil prices, weighing on overall investor sentiment, according to a market analyst.

In Asian markets, South Korea’s Kospi slumped nearly 7 per cent. Japan’s Nikkei 225 index, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index also traded lower.

US markets ended higher on Friday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 2,603.72 crore on Friday, according to exchange data.

On Friday, the Sensex jumped 827.57 points, or 1.08 per cent, to settle at 77,569.39. The Nifty surged 244.10 points, or 1.02 per cent, to end at 24,206.90.