Indian stock markets witnessed a sharp decline as Brent crude oil prices surged past $100 per barrel, driven by escalating geopolitical tensions in West Asia and concerns over India's Balance of Payments.
Sensex and Nifty50 Performance: Key Market Highlights Today
- Indian benchmark indices, Sensex and Nifty, tumbled significantly in early trade, with the Sensex dropping over 500 points.
- The decline was triggered by Brent crude oil prices crossing the $100 per barrel mark, fuelled by escalating geopolitical tensions in the West Asia.
- Major laggards included InterGlobe Aviation (IndiGo's parent) due to net loss and higher fuel prices, and Infosys after tempering its revenue forecast.
- Analysts highlight the attack on Saudi tankers by Iran-backed Houthis in the Red Sea as a key reason for the crude price spike, raising concerns about India's Balance of Payments.
- Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,999.23 crore, contributing to the market downturn.
Market benchmark indices Sensex and Nifty tumbled in early trade on Friday as crude oil prices crossed $100 per barrel mark amid escalating geopolitical tensions in the West Asia.
The 30-share BSE Sensex tumbled 512.07 points to 75,869.38 during initial deals.
The 50-share NSE Nifty declined 153 points to 23,713.60.
Winners and Losers on Dalal Street
From the Sensex pack, InterGlobe Aviation, Eternal, Bharti Airtel, Infosys, Bajaj Finance and Trent were among the major laggards.
InterGlobe Aviation slipped over 2 per cent after IndiGo reported a Rs 238 crore net loss for the three months ended June as higher fuel prices and the West Asia conflict resulted in turbulence for the country's largest airline. InterGlobe Aviation is the parent of IndiGo.
IT services company Infosys declined over 1 per cent after it tempered the upper end of its full-year revenue forecast to between 1.5 per cent and 3 per cent amid continued macroeconomic uncertainty.
HCL Tech, Tech Mahindra, Tata Consultancy Services and Sun Pharma were the winners.
What Experts Say
"The total uncertainty and high volatility in markets continues without any signs of immediate respite.
"The attack on Saudi tankers by the Iran-backed Houthis in the Red Sea is the main reason for the recent sharp spike in Brent crude to about $100. Such high price is bound to revive India's Balance of Payments concerns," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
FII Activity and Global Market Trends
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,999.23 crore on Thursday, according to exchange data.
In Asian markets, South Korea's KOSPI tanked 5.56 per cent. Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were also trading lower.
US markets ended lower on Thursday.
