Domestic equity benchmarks saw a decline on Thursday morning due to rising tensions in West Asia and a significant increase in crude oil prices. The Sensex dropped over 450 points, reaching an intraday low of 73,518, while the Nifty also slipped more than 100 points to touch 23,072.
The IT sector witnessed a major decline, with the Nifty IT index falling over 2%. Additionally, sectors like Nifty MidSmall IT & Telecom, Nifty Cement, and Nifty Auto were among the top losers. On the other hand, healthcare stocks performed well, with Nifty Pharma and Nifty500 Healthcare gaining up to 0.50%, and Nifty Media emerging as the top gainer, rising by 0.78%.
In the Nifty 50 stocks, IT companies faced pressure, with HCLTech experiencing a decline of over 3%, followed by Infosys and Tech Mahindra. Other major losers included Trent, Eternal, TCS, and Wipro, along with Eicher Motors, Titan, and Mahindra & Mahindra.
Market experts noted that investor sentiment was cautious due to the escalating tensions in West Asia and the subsequent surge in crude oil prices. The rise in energy prices could lead to global inflationary pressures, impacting interest rates and economic growth. This uncertainty has triggered a risk-off sentiment in global equity markets.
Amidst these developments, the US Central Command reported launching additional strikes on multiple targets in Iran in response to perceived aggression. Internationally, Brent crude rose by 2.54% to $95.47 per barrel, while US West Texas Intermediate (WTI) crude increased by 4% to $93.64 per barrel. Asian stocks also reflected weak sentiment, with declines in Hong Kong’s Hang Seng and South Korea’s KOSPI, while Japan’s Nikkei traded flat. Wall Street closed lower, with the S&P 500 falling by 1.62% and the Nasdaq declining nearly 2%.
