Sensex Slumps 938 Points, Nifty 23,759.45 As West Asia Tensions Derail Ceasefire Hopes

Mumbai: Equity benchmark indices Sensex and Nifty slumped on Thursday afternoon trade after an impressive rally in the previous session as fresh tensions in West Asia threatened the ceasefire reached between the US and Iran. Weak trends in Asian markets and unabated foreign fund outflows also drove the markets lower.

The 30-share BSE Sensex dropped 938.55 points or 1.21 per cent to hit an intra-day low of 76,624.35. The 50-share NSE Nifty declined 237.9 points or 0.99 per cent to 23,759.45. From the 30-Sensex firms, Larsen & Toubro, InterGlobe Aviation, HDFC Bank, Infosys, ICICI Bank and Eternal were among the major laggards. NTPC, Bharat Electronics, Tata Consultancy Services and Power Grid were among the gainers.

Brent crude, the global oil benchmark, jumped 2.15 per cent to USD 96.79 per barrel. In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index declined after a sharp rally in the previous trade. US markets ended significantly higher on Wednesday. The Dow Jones Industrial Average jumped 2.85 per cent, Nasdaq Composite surged 2.80 per cent and S&P 500 climbed 2.51 per cent.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,811.97 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 4,168.17 crore. Concerns have resurfaced after Iran signalled potential ceasefire breaches amid continued Israeli strikes in Lebanon, limiting follow-through optimism and keeping global risk sentiment in check, Hariprasad K, Research Analyst and Founder, Livelong Wealth, said. On Wednesday, the Sensex jumped 2,946.32 points or 3.95 per cent to settle at 77,562.90. The Nifty soared 873.70 points or 3.78 per cent to end at 23,997.35.

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