Stock markets tumble in early trade on Middle East conflict, foreign fund outflows
Sensex and Nifty fell sharply in early trade Friday as Middle East tensions, weak US equities and continued foreign fund outflows dampened investor sentiment. ICICI Bank and L&T led losses, while IT stocks gained. FIIs remained sellers despite DII support
Mumbai: Stock market benchmark indices Sensex and Nifty tumbled in early trade on Friday after a day’s breather amid persistent geopolitical conflict in the Middle East and relentless foreign fund outflows.
Weakness in the US equities and subdued trend in Asian markets also dampened sentiments.
The 30-share BSE Sensex tumbled 572.43 points to 79,443.47 in early trade. The 50-share NSE Nifty dropped 178.75 points to 24,587.15.
From the Sensex pack, ICICI Bank, InterGlobe Aviation, Larsen & Toubro, HDFC Bank, UltraTech Cement and Tata Steel were among the major laggards.
HCL Technologies, Tech Mahindra, Infosys, Tata Consultancy Services and Bharat Electronics were among the gainers.
Brent crude, the global oil benchmark, dropped 1.17 per cent to USD 84.41 per barrel.
In Asian markets, South Korea’s Kospi traded over 1 per cent lower, while Japan’s Nikkei 225, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index were quoting higher.
The US market ended lower on Thursday.
“Persistent geopolitical tensions in the Middle East continue to keep crude oil prices elevated, heightening concerns over renewed global inflationary pressures and the possibility of tighter monetary policy conditions ahead.
“As a result, global investor sentiment remains cautious, with market participants expected to maintain a measured and risk-averse stance in the near term,” Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,752.52 crore on Thursday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 5,153.37 crore, according to exchange data.
On Thursday, the Sensex rebounded 899.71 points or 1.14 per cent to settle at 80,015.90, snapping its four-day decline. The Nifty climbed 285.40 points or 1.17 per cent to end at 24,765.90, ending its three-day falling streak.
