Mumbai, Sep 24: Benchmark indices Sensex and Nifty tumbled in early trade on Thursday as crude oil prices surged above the USD 100 per barrel mark.
Selling in banks, NBFC stocks and weak trends in global markets also dented markets’ sentiment.
The 30-share BSE Sensex tanked 632.68 points to 74,189.55 in early trade. The 50-share NSE Nifty dropped 216.15 points to 23,222.55.
Among the 30 Sensex firms, Bajaj Finance dropped 4.75 per cent, while Bajaj Finserv declined 3.49 per cent.
Axis Bank, InterGlobe Aviation, Kotak Mahindra Bank and HDFC Bank were also among the major laggards.
However, Tech Mahindra, Sun Pharma, HCL Tech, ICICI Bank and Tata Consultancy Services were the winners.
Brent crude, the global oil benchmark, traded 0.90 per cent lower but reached above at the USD 100 per barrel mark to quote at USD 102.2 per barrel.
“The sharp spike in Brent crude above USD 102 and the US 10-year bond yield rising to 5.11 per cent will weigh on the market today. So long as these two global headwinds remain, the prospects of a smart recovery in the market appear remote. Today the market’s focus will be on the NSE listing,” V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.
National Stock Exchange (NSE) is making its market debut on Thursday. The Rs 22,569 crore IPO of NSE received an overall subscription of 5.71 times.
In Asian markets, Nikkei 225 index quoted in positive territory, while Shanghai’s SSE Composite index and Hong Kong’s Hang Seng index traded lower.
US markets ended lower on Wednesday.
“A rebound in crude oil prices amid renewed uncertainty surrounding the US-Iran diplomatic process, coupled with a rise in US Treasury yields, is likely to prompt some profit-taking after the market’s recent gains. WTI crude is currently trading around USD 91–92 a barrel, while Brent has climbed back above the USD 100 mark. Wall Street closed sharply lower, while Asian markets are showing mixed trends in early trade,” Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.
Foreign Institutional Investors (FIIs) bought equities worth Rs 1,617.45 crore on Wednesday, according to exchange data.
On Wednesday, the Sensex climbed 299.17 points, or 0.40 per cent, to settle at 74,828.25. The Nifty was up 117.80 points, or 0.50 per cent, to end at 23,446.80.
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