Sensex, Nifty tumble after rally as ceasefire-led optimism cools
MUMBAI, April 10 -- Equity benchmark indices ended lower on Thursday, with the Sensex tumbling 931 points after a spectacular rally in the previous session, as renewed tensions in West Asia reduced the ceasefire-led optimism.
The ceasefire deal appeared to be at risk after Iran closed the Strait of Hormuz again in response to Israeli attacks on Lebanon. Weak trends in Asian and European markets, a jump in crude oil prices and uninterrupted foreign fund outflows also made investors jittery in the domestic market.
The 30-share BSE Sensex dropped 931.25 points or 1.20% to settle at 76,631.65. During the day, it dived 1,215 points or 1.56% to 76,347.90. The 50-share NSE Nifty declined 222.25 points or 0.93% to end at 23,775.10.
From the 30-Sensex firms, InterGlobe Aviation, Larsen & Toubro, Eternal, HDFC Bank, ICICI Bank and Kotak Mahindra Bank were among the major laggards.
Bharat Electronics, Power Grid, NTPC and Tata Consultancy Services were among the gainers. Brent crude, the global oil benchmark, jumped 3.27% to $97.85 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 ended lower after a sharp rally in the previous trade.
European markets were quoting in the negative territory. "Ceasefire-led optimism faded as renewed US-Iran tensions and ongoing restrictions at the Strait of Hormuz pushed crude back up, reviving concerns around India's inflation. Domestically, profit-booking, rising 10-year bond yields, and rupee weakness reduced near-term risk appetite. Financials led the decline after the previous session's sharp rally amid sustained FII selling, while broader markets held relatively steady," Vinod Nair, head of research, Geojit Investments Limited, said. Foreign Institutional Investors (FIIs) offloaded equities worth Rs.2,811.97 crore on Wednesday, according to exchange data....
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