Mumbai, Apr 7 (PTI) Stock market benchmark indices Sensex and Nifty declined in early trade on Tuesday as surging crude oil prices amid growing uncertainty about the fate of West Asia war dented investors’ sentiment.
Unabated foreign fund outflows also added to the gloom.
The 30-share BSE Sensex tumbled 824.44 points to 73,282.41 in early trade. The 50-share NSE Nifty dropped 248.95 points to 22,719.30.
From the 30-Sensex firms, InterGlobe Aviation, Eternal, Axis Bank, Mahindra & Mahindra, State Bank of India and Larsen & Toubro were the biggest laggards.
Tech Mahindra, HCL Tech, Bajaj Finance and Tata Consultancy Services were among the gainers.
Brent crude, the global oil benchmark, jumped 1.48 per cent to USD 111.4 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,167.17 crore on Monday, according to exchange data.
Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 8,088.70 crore.
In Asian markets, South Korea’s benchmark Kospi and Shanghai’s Composite index traded higher, while Japan’s Nikkei 225 index quoted lower.
Markets were closed in Hong Kong for a holiday.
“Mixed messaging from US leadership and the absence of a concrete ceasefire framework continue to keep uncertainty elevated.
Iran’s rejection of the US proposal and its counter-conditions suggest that negotiations remain fluid, keeping geopolitical risk firmly in play,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
US markets ended higher on Monday.On Monday, the Sensex jumped 787.30 points or 1.07 per cent to settle at 74,106.85.
The Nifty edged higher by 255.15 points or 1.12 per cent to end at 22,968.25.
This report is given by Press Trust of India. The Sen Times holds no responsibility for its content.
Why did the stock market benchmark indices decline today?
The Sensex and Nifty plummeted primarily due to Brent crude prices surging to USD 111.4 per barrel amid West Asia conflict uncertainty. This energy price spike, coupled with unabated foreign fund outflows totaling over Rs 8,167 crore, significantly dented investor sentiment and domestic liquidity.
How are FII and DII activities affecting the stock market benchmark indices?
Polarized market structure where Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,167.17 crore, while Domestic Institutional Investors (DIIs) counterbalanced this with purchases of Rs 8,088.70 crore. This tug-of-war creates significant volatility but provides a fundamental floor for the benchmark indices.
Which sectors are leading the stock market benchmark indices movement?
Research indicates a divergence between high-laggard sectors like aviation and banking—sensitive to oil and interest rates—and defensive gainers in the IT services sector. While firms like InterGlobe Aviation and SBI faced selling pressure, Tech Mahindra and TCS provided marginal support to the indices.
