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Sensex, Nifty Tumble 0.5% as Crude Spike, Geopolitical Fears Grip Markets

Indian equity benchmarks opened sharply lower on Tuesday, with Sensex declining 474 points and Nifty falling 126 points amid geopolitical tensions and a spike in crude oil prices. Sector-wise, IT, chemicals, realty, and financial indices were the top losers, while Nifty Metal, Oil & Gas, and PSU Bank traded in the green. Market experts highlighted that pharmaceuticals and FMCG sectors are likely to remain resilient, while capital goods stocks could benefit from private capex recovery. Global markets showed mixed trends, with Asian markets trading cautiously and US markets closing slightly higher overnight.

Key Points: Sensex, Nifty Fall on Crude Spike & Geopolitical Tensions

  • Sensex and Nifty open lower for second day amid crude spike
  • IT, chemicals, realty, cement, financial indices top losers
  • Nifty Metal, Oil & Gas, PSU Bank trade in green
  • Brent crude rises 1.09% to $105.35 per barrel
2 min read

Sensex, Nifty open lower amid crude spike, geopolitical tensions

Indian markets open lower with Sensex down 474 pts & Nifty at 23,689. IT, chemicals, realty stocks drag; oil & gas, metal sectors gain.

"Pharmaceuticals is one segment that is unlikely to be impacted at all since the sector has inelastic demand - Market Expert"

Mumbai, May 12

Indian equity benchmarks traded sharply lower on Tuesday for the second consecutive day in morning trade, with both indices declining around 0.5 per cent amid geopolitical tensions.

Sensex declined as much as 0.62 per cent or 474 points to trade at an intraday low of 75,541 in early trade, while Nifty was seen trading at 23,689, down 0.53 per cent or 126 points from the previous close.

Sector-wise, IT, chemicals, realty, cement and financial indices were among the top losers, declining by over 2 per cent.

Meanwhile, Infosys, Tech Mahindra, TCS, HCL Tech, Wipro, SBI Life, HDFC Life, Maruti Suzuki, ICICI Bank, Asian Paints, Dr Reddy's Laboratories and Bajaj Finance were among the top laggards.

In contrast, Nifty Metal, Nifty Oil & Gas and Nifty PSU Bank were the only sectors trading in the green.

Earlier in the day, the Sensex opened at 75,688.39, down 0.43 per cent or 326 points, while the 50-scrip basket began the session at 23,722.60, lower by 0.4 per cent or 93 points.

According to a market expert, sectors that are unlikely to be impacted by Prime Minister Narendra Modi's austerity appeal are expected to remain resilient.

"Pharmaceuticals is one segment that is unlikely to be impacted at all since the sector has inelastic demand," the expert said, adding that the sector also benefits from rupee depreciation.

"FMCG, too, is expected to remain largely unaffected. One sector to watch out for is capital goods. There are clear signs of recovery in capital formation, as reflected in the 67 per cent surge in private capex in September last year," the analyst said.

"This positive development has been overshadowed by a flood of negative news. If the private capex cycle sustains, capital goods stocks are likely to perform well. Demand in sectors such as automobiles and renewable energy continues to remain buoyant, supporting capex growth in these segments," the expert added.

In commodities, international oil benchmark Brent crude rose 1.09 per cent to $105.35 per barrel, while US West Texas Intermediate (WTI) crude gained 1.23 per cent to $99.28 per barrel.

Among global equities, Asian markets showed a mixed trend. Japan's Nikkei traded 0.48 per cent higher, Hong Kong's Hang Seng gained 0.31 per cent, while South Korea's KOSPI declined more than 2 per cent.

Overnight in the US, the S&P 500 closed 0.19 per cent higher, while the Nasdaq settled 0.10 per cent up.

- IANS

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Reader Comments

S
Sarah B
Honestly, this is a buying opportunity if you look at the long-term picture. Pharma and FMCG stocks are resilient as mentioned. I've been adding to my pharma holdings. The private capex recovery is promising too. 🇮🇳 Markets always bounce back stronger.
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Michael C
It's frustrating to see this constant volatility. Every time there's a geopolitical issue, markets tank. Wanted to sell some shares for a family function next month but now I'm stuck. Hope things stabilize soon. 😓
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Priya S
Interesting to see Nifty Metal and Oil & Gas in green despite the broader market decline. Makes sense with the crude spike. But I'm not touching oil stocks right now - too volatile. Better to stick with FMCG and pharma as the expert suggested. Also, private capex recovery is a good sign for capital goods stocks.
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Rohit P
I'm a small investor and this kind of news makes me nervous. 😟 The article mentions IT stocks are among top losers - and I have Infosys! But I guess we have to be patient. The expert's point about pharma and FMCG being resilient gives some comfort. Long-term investment is the way to go I think.
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Vikram M
Respectfully, I feel the government and RBI need to communicate better to calm markets. When crude spikes due to geopolitical tensions, it directly impacts our import bill and inflation. The austerity appeal is fine, but we need structural reforms to reduce dependency on oil imports. Renewable energy capex growing is a positive step though! 🌱

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