Sensex, Nifty Fall Nearly 2% as Iran Tensions Spike Oil Prices and Trigger FII Sell-Off
Indian Markets Open Deep in Red Amid Global Uncertainty
Mumbai, April 2: India’s benchmark equity indices, the Sensex and Nifty, dropped nearly 2 percent in early trading on Thursday, reflecting heightened investor anxiety after fresh geopolitical tensions in West Asia pushed crude oil prices higher and triggered sustained foreign fund outflows.The 30-share BSE Sensex declined by 1,433.72 points, or 1.96 percent, to trade at 71,700.60, while the NSE Nifty fell 445.70 points, or 1.97 percent, to 22,233.70 during the morning session.
Broad-Based Selling Across All Sensex Stocks
Selling pressure was visible across the board, with all 30 Sensex constituents trading in the red. Major laggards included Sun Pharmaceuticals, IndiGo, Adani Ports, Eternal, Larsen and Toubro, Asian Paints, NTPC, State Bank of India, Trent, Kotak Mahindra Bank, Axis Bank, and PowerGrid.Geopolitical Tensions Weigh on Market Sentiment
Investor sentiment weakened after US President Donald Trump signaled a potential escalation in military action against Iran."With President Trump's declaration, 'we are going to hit Iran extremely hard in the next two to three weeks,' market sentiment has turned negative again," said V K Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.
FII Outflows Add to Market Pressure
Foreign Institutional Investors continued to offload equities aggressively, selling shares worth Rs 8,331.15 crore on Wednesday, according to exchange data. In contrast, Domestic Institutional Investors provided partial support by purchasing stocks worth Rs 7,171.80 crore.Vijayakumar noted that multiple macroeconomic pressures are weighing on the market. "The high crude prices, the widening trade deficit, the fear of declining remittances, and sustained selling by FPIs are collectively putting pressure on the rupee, which continues to decline despite the RBI's decisions on restrictions on dollar futures deals," he said.
Asian Markets Track Weakness Despite Strong US Close
The weakness in Indian equities mirrored broader trends across Asian markets. South Korea’s Kospi plunged 4.31 percent, Japan’s Nikkei 225 declined 2.24 percent, Hong Kong’s Hang Seng fell 1.04 percent, and China’s Shanghai SSE Composite slipped 0.53 percent.In contrast, US markets ended significantly higher in the previous session.
Crude Oil Surge Adds to Inflation Concerns
Brent crude, the global oil benchmark, rose sharply by 4.44 percent to USD 105.65 per barrel, intensifying concerns over inflation and input costs for import-dependent economies like India.Previous Session Saw Strong Rally
The sharp decline comes a day after markets posted strong gains. On Wednesday, the Sensex had surged 1,186.77 points to close at 73,134.32, while the Nifty advanced 348 points to settle at 22,679.40.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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