- Indian equities plunged significantly amid West Asia uncertainty.
- Benchmarks Sensex, Nifty50 crashed over 1.5%; broad selling.
- Rising crude prices, FII selling, geopolitical risks fueled decline.
Indian equity benchmarks extended their losses on Monday, September 28, as escalating uncertainty over West Asia, rising crude oil prices and weakness in global markets weighed on investor sentiment. Selling pressure remained widespread, with banking, metal and broader market stocks witnessing declines.
Both benchmarks crashed more than 1.5 per cent by the session’s end. The BSE Sensex closed trading under 72,800, bleeding more than 1,100 points, while the NSE Nifty50 tanked over 350 points and breached 22,800.
The sell-off followed a volatile week for domestic equities, with the Nifty 50 having ended lower for seven consecutive weeks through Friday. Friday’s recovery had failed to reverse the broader weakness, as geopolitical risks and elevated energy prices continued to cloud the outlook.
Hormuz Disruption, Oil Prices Keep Investors On Edge
Developments around the Strait of Hormuz remained central to market sentiment, with shipping activity slowing sharply over the weekend following tanker attacks. US-Iran negotiations reportedly stalled, while Iran’s military said it was prepared for possible renewed US attacks after Washington rejected an Iranian proposal linked to reopening the strait.
The uncertainty surrounding the strategic waterway has raised concerns about potential disruptions to global oil supplies. Any prolonged disruption could push crude prices higher, adding to India’s import bill and putting pressure on sectors sensitive to energy costs.
Brent crude futures had settled at $104.32 per barrel on September 25, down 2.14 per cent, while WTI crude ended at $92.57 per barrel, lower by 2.16 per cent.
The decline in crude prices during Friday’s session had offered some relief to oil marketing companies, airlines and crude-intensive sectors such as paints. However, renewed supply concerns linked to the Strait of Hormuz remain a key risk for the coming sessions.
Also Read : GST Council To Consider Lower Penalties, Easier Refunds, And Simplified Registration On Oct 7
Banking, Metal Stocks Drag; Broader Markets Also Fall
Selling was visible across market segments, with private banking stocks recording the steepest decline among sectoral indices.
Hindalco Industries, Max Healthcare Institute and Kotak Mahindra Bank were among the biggest losers in the Nifty 50 index in the afternoon.
The Nifty MidCap index fell 1.31 per cent, while the Nifty SmallCap index declined 1.43 per cent, reflecting weakness beyond the frontline indices.
The Nifty IT index held up relatively better than other sectors, recording the smallest decline, although it too traded in negative territory.
The market’s weakness had been evident from the opening bell. At 9:18 AM, the Sensex was down 531.03 points, or 0.72 per cent, at 73,364.71, while the Nifty 50 declined 174.15 points, or 0.75 per cent, to 22,966.35.
By 11 AM, the Sensex had fallen 991.95 points, or 1.34 per cent, to 72,903.79. The Nifty 50 was down 302 points, or 1.31 per cent, at 22,838.50.
At 1 PM, the Sensex traded 971.46 points lower at 72,924.28, while the Nifty 50 declined 315.25 points to 22,825.25.
Wall Street Gains Fail To Lift Domestic Sentiment
US equities ended Friday higher, supported by technology stocks and some easing in oil prices. The S&P 500 rose 0.51 per cent to 7,743.41, the Nasdaq gained 0.48 per cent to 27,068.72, and the Dow Jones advanced 0.93 per cent to 51,828.62.
Microsoft rose 3.7 per cent, while Qualcomm and Dell also advanced. Akamai Technologies gained after announcing an $11.6 billion cloud services deal with Anthropic.
However, elevated US Treasury yields and expectations of tighter monetary policy continued to weigh on the broader global outlook.
The US 10-year Treasury yield touched a fresh 19-year high and was last reported at 5.196 per cent. Markets were pricing in a 66 per cent probability of another 25-basis-point Federal Reserve rate hike in October.
Higher US yields can make dollar-denominated assets relatively more attractive and contribute to foreign portfolio outflows from emerging markets.
In the latest available Asian session, the Nikkei 225 stood at 66,364.20, up 1.30 per cent, while the Hang Seng closed at 24,510.09, down 1.01 per cent. The Shanghai Composite was last available at 3,888.37, while the Kospi stood at 7,080.92.
European markets ended their latest session mixed to lower. The FTSE 100 fell 0.24 per cent to 10,679.99, the DAX declined 0.57 per cent to 25,266.53, and the CAC 40 dropped 0.52 per cent to 8,081.43.
Also Read : Supreme Court Declines Stay On October 15 UPI Charges, Issues Notices To Centre, RBI, NPCI
FII Selling, Rupee Near Rs 96 Add To Market Concerns
Foreign institutional investors continued to sell Indian equities, while domestic institutions provided some support.
FIIs were net sellers of Rs 3,693.90 crore in the cash market on September 25. Domestic Institutional Investors, meanwhile, bought equities worth Rs 2,838.20 crore.
The latest flows indicate continued foreign selling pressure, even as domestic institutional buying has helped cushion some of the impact.
The Indian rupee closed at around Rs 95.81 against the US dollar on Friday, compared with Rs 95.96 previously. The currency remained close to the Rs 96 mark despite RBI intervention and softer oil prices.
The Dollar Index closed around 100.97, down 0.32 per cent on Friday, but remained higher over the week amid hawkish Federal Reserve expectations and elevated Treasury yields.
Gold futures ended Friday at $4,320.50 per ounce, up 0.52 per cent, while silver futures gained 1.11 per cent to around $64.71.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
