Sensex Falls 561 Points, Nifty Ends Below 24,100 As Strait Of Hormuz Concerns Hit Markets, IT & Oil-Linked Stocks Drag

Mumbai: Indian equity benchmarks ended sharply lower on Tuesday after concerns over the Strait of Hormuz weighed on investor sentiment. The Nifty closed 159 points, or 0.66 percent, lower at 24,052, while the Sensex fell 561 points to settle at 77,055.

Markets remained under pressure throughout the session after Iran's military spokesperson said the Strait of Hormuz would not be reopened if the US continued its military action. The statement raised fears of supply disruptions and pushed crude oil prices higher.

Broad selling

Selling was widespread across the market. Out of the 50 Nifty stocks, 36 ended in the red, while 24 of the 30 Sensex stocks closed lower.

HCL Technologies, Shriram Finance, HDFC Life, Tata Motors and InterGlobe Aviation were among the biggest losers on the Nifty.

HCLTech drags IT

HCL Technologies dropped more than 4 percent after reporting mixed June-quarter earnings, making it the biggest loser on the Nifty.

Higher crude oil prices also hurt sectors that are sensitive to fuel costs. Tata Motors, especially its passenger vehicle business, and Bajaj Auto declined. Airline operator InterGlobe Aviation (IndiGo) fell nearly 2 percent, while paint companies also traded lower due to concerns over rising input costs.

Biocon, CONCOR outperform

Despite the weak market, Biocon surged around 7 percent after Mylan exited its entire 5.6 percent stake through a block deal.

Container Corporation of India (CONCOR) gained more than 6 percent after reporting a strong business update for the June quarter, boosting investor confidence.

Bharti Airtel, Apollo Hospitals, Sun Pharma, TCS and Dr Reddy's Laboratories also ended the day with gains.

Sectoral trends

Among sectoral indices, Nifty Realty declined 2 percent, followed by Nifty PSU Bank (1.8 percent), Nifty Auto (1.6 percent), Nifty Bank (1.1 percent) and Nifty IT (1 percent).

Nifty Private Bank, Oil & Gas, FMCG, Media and Infra indices also closed lower.

Pharma and metal stocks were the only bright spots, with Nifty Pharma rising 1 percent and Nifty Metal gaining 0.6 percent.

The broader market also remained weak, with the Nifty Midcap 100 falling 0.4 percent and the Nifty Smallcap 100 declining 1 percent.