Mumbai: Benchmark stock indices Sensex and Nifty closed more than 1 per cent lower on Wednesday, March 4, in tandem with a weak trend in Asian markets as the conflict in West Asia intensified, driving oil prices higher.
Falling for the fourth straight session, the 30-share BSE Sensex tumbled 1,122.66 points or 1.40 per cent to settle at 79,116.19. During the day, it crashed 1,795.65 points or 2.23 per cent to 78,443.20 but recovered some of the losses in the second half of the session.
The 50-share NSE Nifty dived 385.20 points or 1.55 per cent to end at 24,480.50, marking its third straight session of losses and logging the lowest closing level in the past six months. During the day, it dropped 560.3 points or 2.25 per cent to 24,305.40.
From the Sensex pack, Tata Steel tanked 6.76 per cent, followed by Larsen & Toubro (4.53 per cent). Bajaj Finance, UltraTech Cement, NTPC, InterGlobe Aviation, Bajaj Finserv and Kotak Mahindra Bank were also among the laggards.
Bharti Airtel, Infosys and Tech Mahindra were the gainers.
Brent crude, the global oil benchmark, jumped 3.08 per cent to USD 83.91 per barrel.
“Global risk sentiment remained fragile amid ongoing tensions in the Middle East and the closure of the Strait of Hormuz, which kept oil prices volatile. Indian equities mirrored the broader risk‑off environment due to the impact of inflation and the potential for higher CAD.
“The continued depreciation of the INR also remains a key concern, while incremental foreign outflows lead to near-term volatility in the market,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
The rupee slumped to an all-time low of 92.35 against US dollar on Wednesday, weighed down by spiking crude oil prices.
The BSE smallcap select index tumbled 2.42 per cent and midcap select index dropped 2.10 per cent.
Among sectoral indices, metal plunged 4 per cent, BSE PSU Bank (3.50 per cent), industrials (3.29 per cent), realty (3.16 per cent), commodities (3.12 per cent), capital goods (2.64 per cent), power (2.59 per cent), services (2.25 per cent) and energy (2.23 per cent).
A total of 3,245 stocks declined, while 1,053 advanced and 135 remained unchanged on the BSE.
Asian markets ended with deep cuts. South Korea’s Kospi tumbled 12 per cent. Japan’s Nikkei 225, Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index also ended significantly lower.
European markets were trading in positive territory. The US market ended in negative territory on Tuesday, March 3.
The conflict in West Asia intensified with Iran continuing to pound several Gulf countries in retaliation for the joint attack against it by Israel and the US. The US and Israel have also carried out fresh strikes on Iran.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,295.64 crore on Monday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 8,593.87 crore.
Equity markets were closed on Tuesday for Holi.
On Monday, the Sensex ended at 80,238.85, down 1,048.34 points or 1.29 per cent. The Nifty settled 312.95 points or 1.24 per cent down at 24,865.70.
