Mumbai: India’s benchmark stock indices Sensex and Nifty fell sharply during Friday’s intra-day trade. The decline came as rising geopolitical tensions in West Asia and increasing crude oil prices made investors cautious.
Weak global market trends, continued selling by foreign investors and a weaker rupee also added pressure on the Indian stock market.
Sensex and Nifty Drop Sharply
The 30-share BSE Sensex fell 1,361.57 points, or 1.79 percent, to 74,672.85 during the trading session. At the same time, the NSE Nifty dropped 461.15 points, or 1.95 percent, to 23,178.00.
The fall reflects the continued weakness in the market as investors reacted to global uncertainties and rising energy prices.
Major Stocks Among Top Losers
Several major companies on the Sensex saw strong selling pressure during the trading session.
Larsen & Toubro and Tata Steel were among the biggest losers, each declining more than 4 percent. Other stocks that came under pressure included Bharat Electronics, UltraTech Cement, Axis Bank and Maruti.
However, a few companies managed to stay in positive territory. Hindustan Unilever, Trent, Bharti Airtel and NTPC were among the stocks that recorded gains.
Oil Prices Cross USD 101 Per Barrel
Crude oil prices also moved higher during the day. Brent crude, the global oil benchmark, rose around 0.49 percent to about $101 per barrel.
Higher oil prices are a major concern for India because the country imports a large portion of its crude oil. Rising oil prices can increase the import bill and also push inflation higher.
Global Markets Also Under Pressure
Stock markets across Asia were also trading lower. South Korea’s Kospi index, Japan’s Nikkei 225, China’s Shanghai Composite and Hong Kong’s Hang Seng index were all in negative territory.
The weakness followed a sharp decline in US markets overnight. On Thursday, the Nasdaq Composite dropped 1.78 percent, the Dow Jones Industrial Average fell 1.56 percent and the S&P 500 declined 1.52 percent.
Foreign Investors Continue Selling
Foreign Institutional Investors (FIIs) continued to sell Indian equities. According to exchange data, FIIs sold shares worth ₹7,049.87 crore on Thursday.
Domestic Institutional Investors (DIIs), however, provided some support to the market by purchasing stocks worth Rs 7,449.77 crore during the same period.
Previous Session Also Saw Heavy Losses
The Indian market had already ended lower on Thursday. The Sensex had fallen 829.29 points to close at 76,034.42.
Similarly, the Nifty had dropped 227.70 points to end at 23,639.15. The continued decline shows that global tensions and rising oil prices are currently weighing heavily on investor sentiment.
