MUMBAI: Benchmark stock indices Sensex and Nifty ended sharply lower on Monday as escalating tensions in the Middle East rattled investor sentiment.
The selloff was triggered after the United States bombed three major nuclear sites in Iran, signalling a direct entry into the ongoing Israel-Iran conflict.
The 30-share BSE Sensex lost 511.38 points or 0.62 per cent to close at 81,896.79. During the day, it plunged as much as 931.41 points or 1.13 per cent to touch an intra-day low of 81,476.76 before paring some losses.
The broader NSE Nifty fell 140.50 points or 0.56 per cent to settle at 24,971.90.
The US airstrikes reportedly targeted the Fordow, Natanz and Isfahan nuclear facilities in Iran, deepening the geopolitical uncertainty in the region.
Among the Sensex constituents, HCL Tech, Infosys, Larsen & Toubro, Mahindra & Mahindra, Hindustan Unilever, ITC, Tata Consultancy Services and Maruti were among the top losers. On the other hand, Trent, Bharat Electronics, Bajaj Finance and Kotak Mahindra Bank managed to post gains.
Asian markets saw mixed trends. South Korea’s Kospi and Japan’s Nikkei 225 ended lower, while Shanghai’s SSE Composite index and Hong Kong’s Hang Seng closed in the green. European markets were trading in negative territory during mid-session. US markets had ended mostly lower on Friday.
Brent crude, the global oil benchmark, rose 0.49 per cent to 77.39 a barrel following the weekend strikes, as concerns over energy supply resurfaced.
Last Friday, markets were buoyed by expectations of easing tensions in the Middle East after the US announced a two-week window to review its role in the Israel-Iran conflict.
Airstrike
“The surprise airstrike on Iran’s nuclear infrastructure over the weekend upended those hopes, pushing oil prices higher and triggering consolidation in domestic equities,” said Vinod Nair, Head of Research at Geojit Financial Services.
He noted that despite the initial jolt, markets recovered part of their losses, aided by buying in capital goods and metal stocks, as investors assessed that an immediate disruption in oil supply remained unlikely.
Foreign Institutional Investors (FIIs) were net buyers on Friday, purchasing equities worth Rs7940.70 crore, according to exchange data.
On Friday, the Sensex had surged 1046.30 points or 1.29 per cent to close at 82,408.17, while the Nifty climbed 319.15 points or 1.29 per cent to settle at 25,112.40.
