Mumbai
Benchmark equity indices BSE Sensex and NSE Nifty declined sharply in Thursday’s afternoon trade, reversing gains from the previous session as fresh tensions in West Asia dampened investor sentiment.
The Sensex dropped 938.55 points, or 1.21 per cent, to an intra-day low of 76,624.35, while the Nifty fell 237.9 points, or 0.99 per cent, to 23,759.45.
The downturn was driven by concerns over the fragile ceasefire between the United States and Iran, along with weak cues from Asian markets and continued foreign fund outflows.
Among major laggards on the Sensex were Larsen & Toubro, InterGlobe Aviation, HDFC Bank, Infosys and ICICI Bank. On the other hand, stocks such as NTPC, Bharat Electronics, Tata Consultancy Services and Power Grid Corporation of India registered gains.
Global oil prices also moved higher, with Brent crude rising over 2 per cent to around USD 96.79 per barrel, adding to inflationary concerns.
Asian markets, including indices in South Korea, Japan, China and Hong Kong, traded lower following the previous day’s rally. Meanwhile, US markets had closed on a strong note on Wednesday, with major indices posting gains of over 2.5 per cent.
According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 2,811.97 crore on Wednesday, while Domestic Institutional Investors (DIIs) remained net buyers, purchasing stocks worth Rs 4,168.17 crore.
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Market participants remained cautious as geopolitical tensions resurfaced, particularly after signals from Iran suggesting possible strains in the ceasefire amid ongoing developments in the region, keeping global risk sentiment subdued.
