NewKerala.com

Sensex, Nifty Fall on Geopolitical Fears; Oil Prices Surge Over 3%

Indian equity benchmarks opened lower, with the Sensex dropping 560 points and Nifty falling 182 points, as fresh Middle East tensions raised fears of supply disruptions. Sectoral losses were led by IT, realty, banking, and auto stocks, with Infosys and Axis Bank among the top decliners. Institutional activity showed a sharp divergence, with Foreign Institutional Investors as net sellers and Domestic Institutional Investors as strong buyers. Meanwhile, Brent crude oil prices jumped over 3% amid the geopolitical risk, while Asian markets also traded lower.

Key Points: Sensex Dips 560 Pts on Geopolitical Tensions, Oil Soars

  • Sensex fell 560 pts
  • Nifty down 182 pts
  • Brent crude surged 3.3%
  • FIIs sold Rs 2,812 cr
  • DIIs bought Rs 4,168 cr
2 min read

Sensex, Nifty trade lower amid fresh geopolitical tensions

Indian markets fell as Israel-Hezbollah tensions spooked investors. Sensex dropped 0.72%, Nifty 0.75%, while Brent crude surged past $97. Analysts advise caution.

"This ongoing divergence between foreign and domestic flows continues to play a key role in market stability. - Analysts"

Mumbai, April 9

The Indian equity markets opened on a cautious note on Thursday after witnessing a sharp rally in the previous session. Benchmark indices declined amid investor concerns over escalating geopolitical tensions, as reports suggested that Israel had attacked Lebanon's Hezbollah, raising fears of a possible disruption in the Strait of Hormuz.

Sensex traded 560 points or 0.72 per cent lower at 77,003, hitting an intra-day low in early trade, while Nifty fell as much as 182 points or 0.75 per cent to 23,815, also logging an intra-day low. Sectorally, IT, realty, banking, and auto stocks were among the top laggards, declining up to 1 per cent.

Among the Nifty pack, Infosys, Shriram Finance, HCL Tech, Bajaj Finance, IndiGo, Tech Mahindra, Axis Bank, and M&M were the top losers.

According to analysts, traders should adopt a cautious approach, prefer a 'buy on dips' strategy near support levels, and avoid aggressive long positions at higher levels.

"This ongoing divergence between foreign and domestic flows continues to play a key role in market stability," they added.

Analysts further noted that India VIX cooled sharply to around 19.69, indicating a decline in volatility, although markets may still witness intraday swings.

Institutional flows continue to reflect divergence. On Wednesday, FIIs remained net sellers to the tune of approximately Rs 2,812 crore, while DIIs continued their strong buying with inflows of around Rs 4,168 crore.

Meanwhile, Brent crude futures surged as much as 3.31 per cent to $97.89 per barrel at 9:06 a.m. US West Texas Intermediate (WTI) crude traded at $98.38, up 4.2 per cent from the previous close.

Asian stocks also traded lower, with the Nikkei, Hang Seng, and KOSPI down 0.77 per cent, 0.17 per cent, and over 1 per cent, respectively.

In the US, Wall Street ended higher, with major indices finishing more than 2 per cent up.

- IANS

Share this article:

Reader Comments

S
Sarah B
The surge in crude prices is the real worry for India. Every dollar increase hits our import bill and inflation. Hope the government has a plan to manage this. The market dip might be a short-term correction, but high oil is a long-term headwind. 📉
V
Vikram M
FIIs selling while DIIs are buying heavily shows the classic tug-of-war. It's reassuring to see domestic institutions have such faith. This volatility is a good time for SIP investors to average out. Don't panic, just stay the course.
P
Priya S
IT stocks taking a hit again. As someone working in the sector, the global uncertainty directly impacts project flows and client budgets. Hope the Strait of Hormuz situation doesn't escalate further. 🙏
R
Rohit P
While the analysis is good, I feel the article could have explained the 'Strait of Hormuz' angle better for common readers. How exactly does a conflict there affect Indian markets? More clarity would help. Otherwise, a useful update.
K
Karthik V
Auto and banking down too. Higher crude means higher fuel and input costs, which hits these sectors hard. Might be a good opportunity to pick up some quality names if the fall continues. Time to do some research!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50