Sensex Down 350 Points, Nifty Slips 0.37% As US-Iran Standoff Weighs On Investor Sentiment

Indian equity benchmarks opened lower on Friday as the prolonged US-Iran standoff weighed on investor sentiment.

The 30-share BSE Sensex declined up to 357 points, or 0.45%, to 77,722, while the 50-share NSE Nifty fell up to 91 points to 24,304 in early trading.

Tata Steel, Axis Bank, InterGlobe Aviation, Tech Mahindra, Power Grid and ITC were among the major laggards on the Sensex. Eternal, Titan, Adani Ports and Bajaj Finance were among the stocks trading higher.

As of 10:30 am, Sensex was 333 points lower while the Nifty was down 75 points.

Brent crude, the global oil benchmark, was up 0.06% at $87.12 per barrel. According to Ponmudi R, CEO of Enrich Money, the unresolved tensions between the US and Iran continue to support crude prices, increasing risks for oil-importing economies such as India through higher inflation and currency volatility.

Global markets, FII flows in focus

Asian markets presented a mixed picture. South Korea’s Kospi and Japan’s Nikkei 225 gained, while Shanghai’s SSE Composite and Hong Kong’s Hang Seng traded lower. US markets, meanwhile, closed higher on Thursday.

Foreign Institutional Investors (FIIs) remained net sellers in Indian equities, offloading shares worth Rs 510.69 crore on Thursday, exchange data showed.

The previous session had ended on a mixed note. Late buying helped the Sensex finish 113.61 points, or 0.15%, higher at 78,079.96. The Nifty, however, declined 40.10 points, or 0.16%, to close at 24,395.85, marking its third consecutive session of losses.

Investors are now closely watching developments surrounding the US-Iran standoff, crude oil prices and foreign fund flows for further cues on the domestic market.