Sensex, Nifty Sink Nearly 2 Pc on Surging Crude Oil Prices

Mumbai: Equity benchmark indices Sensex and Nifty fell almost 2 per cent on Monday as weak global trends due to rising crude oil prices and deteriorating situation in West Asia triggered sharp selling in the stock market. Traders also noted that the unabated outflow of foreign funds and the weakening of the rupee against the US dollar have heavily impacted investors’ sentiment.

The 30-share BSE Sensex recorded its second day of decline, falling 1,352.74 points or 1.71 per cent to settle at 77,566.16 points. During the day, the indicator fell by 2,494.35 points or 3.16 percent to 76,424.55.

Similarly, the 50-share NSE Nifty ended at 24,028.05, down 422.40 points or 1.73 per cent. It fell 752.65 points or 3.07 percent to 23,697.80 during the day.

UltraTech Cement was the biggest loser in the Sensex pack, falling 5.23 per cent, followed by Maruti, Mahindra & Mahindra, State Bank of India, InterGlobe Aviation and Adani Ports.

In contrast, Reliance Industries, Sun Pharma, Infosys, Tech Mahindra and HCL Tech were the winners.

Global oil reference Brent crude oil increased by 12.34 percent to 104.1 dollars per barrel.

“Indian stock markets ended the session sharply lower after opening with a steep margin of around 3 per cent as weak global signals and the deepening conflict in the Middle East weighed heavily on investor confidence.

“The rise in geopolitical risks has pushed crude oil prices above the $100 per barrel level and pushed the Indian rupee to a record low against the US dollar, raising concerns about inflation and external balances,” said Ponmudi R, CEO of online trading and wealth technology company Enrich Money.

In Asian markets, South Korea’s Kospi index fell by 5.96 percent and Japan’s Nikkei 225 index fell by 5.20 percent. Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index also closed in negative territory.

European markets were trading significantly lower in mid-session trading.

The US market closed sharply lower on Friday.

Foreign Institutional Investors (FIIs) sold shares worth Rs 6,030.38 billion on Friday, according to stock exchange data. Domestic Institutional Investors (DIIs) bought shares worth Rs 6,971.51 billion in previous trade.

On Friday, Sensex settled at 78,918.90, down 1,097 points or 1.37 percent. Nifty closed at 24,450.45, down 315.45 points or 1.27 percent.

Last week, the BSE index decreased by 2,368.29 points, or 2.91 percent, while Nifty decreased by 728.2 points, or 2.89 percent.