Mumbai (Maharashtra) [India], May 11 (ANI): Indian fairness markets witnessed sharp promoting stress on Monday as renewed tensions within the Gulf area and issues over rising crude oil costs weighed closely on investor sentiment.
The Nifty 50 index closed at 23,815.85, down 360.30 factors or 1.49 per cent, whereas the BSE Sensex settled at 76,015.28, declining 1,312.91 factors or 1.70 per cent.
Market specialists mentioned investor sentiment weakened after contemporary geopolitical issues in West Asia and rising worries over the influence of elevated crude oil costs on India’s economic system.
Vinod Nair, Head of Research, Geojit Investments mentioned the benchmark indices slipped sharply following renewed Gulf tensions after former US President Donald Trump reportedly rejected Iran’s peace proposal.
‘The benchmark index slipped under the 24,000 mark as renewed Gulf tensions, following Trump’s rejection of Iran’s peace proposal, weighed on investor sentiment,’ Nair mentioned.
He added that the cautious temper out there deepened after Prime Minister Narendra Modi appealed to residents to preserve power and keep away from non-essential international journey.
According to Nair, buyers are reassessing the attainable financial influence of upper crude oil costs, weak spot within the Indian rupee and stress on the present account deficit.
‘At current, India’s sturdy fiscal place and wholesome foreign exchange reserves are serving to the federal government to soak up the influence of elevated crude costs. However, extended geopolitical tensions may enhance macroeconomic stress,’ he mentioned.
He additional added that rising bond yields and continued international institutional investor (FII) outflows are prone to maintain markets range-bound within the close to time period.
Sector-wise, promoting stress was seen throughout most indices on the National Stock Exchange (NSE).
Nifty Consumer Durables emerged because the worst-performing sector, declining greater than 3 per cent in the course of the session.
Nifty PSU Bank fell 2.52 per cent, whereas Nifty Media declined 2.49 per cent and Nifty Auto slipped 1.86 per cent. Nifty IT additionally closed decrease by 0.22 per cent. Among main sectors, solely FMCG and Pharma managed to finish the session with positive factors.
Crude oil costs remained elevated amid the continuing geopolitical tensions in West Asia. Brent crude costs had been buying and selling round USD 103 per barrel on the time of submitting this report.
In Asian markets, most main indices closed in optimistic territory besides Japan. Japan’s Nikkei 225 index ended decrease by 0.38 per cent at 62,479. Singapore’s Straits Times index gained 0.42 per cent to shut at 4,942, whereas Hong Kong’s Hang Seng index edged up 0.06 per cent to settle at 26,410. Taiwan’s weighted index additionally rose 0.45 per cent to shut at 41,790. (ANI)