Benchmark stock market indices continued to shed as a heavy selloff was witnessed on Dalal Street. Sensex and Nifty fell nearly 2% over geopolitical concerns in the Middle East.
The S&P BSE Sensex tanked 1,470.50 points to close at 74,563.92, while the NSE Nifty50 plunged 488.05 points to end at 23,151.10.
Vinod Nair, Head of Research, Geojit Investments Limited, said that the deep sell-off witnessed in the street was triggered by a perfect storm: escalating geopolitical conflict leading to macroeconomic shocks, along with margin-related technical pressures that forced squaring-off of short-term positions.
“Crude oil prices are surging back to $100 per barrel, raising concerns over inflation, corporate margins, and INR stability. Metals and auto stocks were among the worst hit, as supply constraints and higher input costs are expected to hit business and profitability,” he added.
After the closing bell, Hindustan Unilever Ltd was among the few gainers on the Sensex, rising 1.18%. Bharti Airtel Ltd also ended higher, gaining 0.33%.
On the losing side, Larsen and Toubro Ltd saw the sharpest fall, dropping 7.52%. Tata Steel Ltd declined 5.20%, State Bank of India Ltd slipped 3.55%, Bharat Electronics Ltd fell 3.12%, and Maruti Suzuki India Ltd was down 3.12%, as broad selling pressure weighed on most stocks.
“Heightened volatility weakened trader sentiment, discouraging them from carrying positions into the weekend amid persistent geopolitical risks. The lack of buying support from domestic institutional and retail investors, coupled with continued FII outflows, intensified the decline,” said Nair.
