Stock market benchmark indices Sensex and Nifty declined in early trade on Tuesday as rising crude oil prices and the US-Iran hostilities kept risk appetite subdued.
The 30-share BSE Sensex dropped 382.25 points to 75,750.56 in early trade. The 50-share NSE Nifty declined 97.80 points to 23,681.80.
Among the 30 Sensex firms, Mahindra & Mahindra, Trent, Sun Pharma, Axis Bank, ICICI Bank and Tata Consultancy Services were the major laggards.
Bharat Electronics, Eternal and Adani Ports were the gainers.
Brent crude, the global oil benchmark, traded 0.54 per cent higher at USD 97.52 per barrel.
“Rising crude prices and renewed US-Iran hostilities kept risk appetite subdued,” Rajesh Palviya, Head of Research, Axis Direct, said.
In Asian markets, South Korea’s Kospi, Japan’s Nikkei 225 index and Shanghai’s SSE Composite index quoted higher, while Hong Kong’s Hang Seng index traded lower.
US markets were closed on Monday for the Labour Day holiday.
“Global cues are mixed. US markets were closed overnight for the Labour Day holiday, while Asian markets are trading mixed this morning, with the unresolved geopolitical crisis and elevated crude oil prices remaining the dominant variables for investor sentiment,” Hariselvan Radhakrishnan, Founder & CEO of HST Wealth, a research analyst firm, said.
Foreign Institutional Investors (FIIs) bought equities worth Rs 280.13 crore on Monday, according to exchange data.
“The geopolitical backdrop remains fragile as the US-Iran conflict shows few signs of easing. Uncertainty surrounding the Strait of Hormuz and the timing of its full reopening continues to underpin concerns over global oil supplies and broader market sentiment,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
On Monday, the Sensex dropped 382.62 points, or 0.50 per cent, to settle at 76,132.81. The Nifty declined 118.55 points, or 0.50 per cent, to end at 23,779.15.
