Mumbai: Domestic stock markets fell heavily in early trade on Monday amid rising tensions in West Asia and sharp rise in crude oil prices.
BSE’s 30-share benchmark index Sensex fell 2,743.46 points, or 3.37 percent, to 78,543.73 points in early trade. At the same time, NSE’s standard index Nifty based on 50 shares fell by 533.55 points or 2.11 percent to 24,645.10 points. Among Sensex companies, shares of InterGlobe Aviation (IndiGo), Larsen & Toubro, Eternal, Adani Ports, Asian Paints, UltraTech Cement and Reliance Industries fell the most.
Bharat Electronics was the only stock included in the Sensex which registered a gain. Global oil benchmark Brent crude fell 5.38 percent to US$76.79 per barrel.
According to analysts, uncertainty over energy supply has increased after the war in West Asia, due to which there is an atmosphere of panic in the market. Iran’s supreme leader Ayatollah Ali Khamenei has been killed in a coordinated air strike by America and Israel. Following its confirmation on Sunday, Iran retaliated by firing missiles at Israel and other Arab countries in the region, further deepening geopolitical tensions.
In other markets in Asia, Japan’s Nikkei and Hong Kong’s Hang Seng were in the red, while China’s Shanghai Composite Index was trading in the green. US markets closed with a decline on Friday. V.K., chief investment strategist at Geojit Investments Ltd. Vijayakumar said, “Uncertainty related to the war in West Asia will keep the market under pressure in the near term. The biggest risk from the market perspective is the risk related to the rise in crude oil prices.”
According to stock market data, foreign institutional investors (FIIs) sold shares worth Rs 7,536.36 crore on Friday. Whereas domestic institutional investors (DIIs) purchased Rs 12,292.81 crore. On Friday, Sensex fell 961.42 points to 81,287.19 and Nifty fell 317.90 points to 25,178.65.