Sensex and Nifty decline amid surging oil prices and West Asia war escalation fears. Foreign fund outflows dent market sentiment.
Relentless foreign fund outflows also dented markets’ sentiment.
The 30-share BSE Sensex declined 270.13 points to 73,049.42 in early trade. The 50-share NSE Nifty dropped 93.60 points to 22,619.50.
Later, the BSE benchmark traded 509.77 points lower at 72,822.60, and the Nifty quoted 141.20 points down at 22,571.90.
From the 30-Sensex firms, Reliance Industries, Kotak Mahindra Bank, Sun Pharma, InterGlobe Aviation, Adani Ports and ICICI Bank were among the major laggards.
Trent, Titan, Tech Mahindra and Bharat Electronics were among the gainers.
Brent crude, the global oil benchmark, climbed 0.74 per cent to USD 109.8 per barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 9,931.13 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 7,208.41 crore.
“With uncertainty over the West Asia conflict looming large the market will continue to be volatile responding to potential good and bad news. The potential for further escalation of the war is high in the next few days. The market will be keenly watching the response of crude prices to war-related events,” VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
In Asian markets, South Korea’s benchmark Kospi and Japan’s Nikkei 225 index were quoting higher.
US markets were closed on Friday for Good Friday.
“Comments from US President Donald Trump indicating potential escalation if key supply routes are not restored have kept risk appetite in check. This continues to keep crude oil and global uncertainty as dominant drivers for markets,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.
Equity markets were closed on Friday due to Good Friday.
On Thursday, the 30-share BSE Sensex settled higher by 185.23 points or 0.25 per cent at 73,319.55. The Nifty closed at 22,713.10 up by 33.70 points or 0.15 per cent.