Stock markets tumble over 2 pc on escalating US-Iran tensions, sharp surge in oil prices

MUMBAI, Jul 8 (PTI) Equity benchmark indices Sensex and Nifty fell sharply by over 2 per cent during the fag-end of the trade on Wednesday amid reports that the US President Donald Trump said the interim agreement with Iran is over, leading to a sharp rally in crude oil prices.

The 30-share BSE Sensex tanked 1,722.99 points, or 2.20 per cent, to 76,457.73 in intraday trade. The 50-share NSE Nifty tumbled 530.05 points, or 2.17 per cent, to 23,868.65.

All the 30-Sensex firms were trading in the red. InterGlobe Aviation, Maruti, Hindustan Unilever, UltraTech Cement, Bajaj Finance and Mahindra & Mahindra were major laggards.

Brent crude, the global oil benchmark, jumped 6.19 per cent higher at USD 78.75 per barrel.

US President Donald Trump on Wednesday said the interim agreement with Iran was “over” but he would allow talks to continue. That raised concerns that the wider conflict in the Middle East could resume — and oil prices shot up.

In Asian markets, South Korea’s Kospi tumbled 5.35 per cent, Japan’s Nikkei 225 index declined 2.11 per cent, and Shanghai’s SSE Composite index dipped 0.49 per cent. Hong Kong’s Hang Seng index jumped 2.99 per cent.

US markets ended lower on Tuesday.

Foreign Institutional Investors (FIIs) bought equities worth Rs 393.19 crore on Tuesday, according to exchange data.

On Tuesday, fag-end selling dragged the Sensex lower, leading the benchmark to settle 104.35 points, or 0.13 per cent, down at 78,180.72. The Nifty dipped 31.65 points, or 0.13 per cent, to end at 24,398.70.