Indian stock indices fall as war escalates in West Asia
Mumbai, Sep 2: India’s stock indices fell today as oil prices rose and global bond yields stoked inflation concerns, raising fears that central banks could be forced to keep interest rates higher for longer.
The benchmark BSE Sensex opened 473 points or 0.6 per cent lower at 76,471.32.
Likewise, the Nifty 50 index fell 197 points or 0.8 per cent to start at 23,858.
Both the indices extended the opening losses, with the Sensex hitting a low of 76,135, down 809 points or 1.05 per cent. The NSE Nifty index dropped 269 points or 1.1 per cent to make a low of 23,786.
Analysts said that global cues remain cautious amid the escalation of the US-Iran conflict. The supply concerns due to the blockade of the Strait of Hormuz would only add pressure on India’s import bill.
Both the benchmarks finally settled in the red, extending losses to the third straight session. The Sensex fell 373.93 points, or 0.49 per cent to end at 76,570.25.
The Nifty 50 index lost 141.35 points or 0.59 per cent to finish the session at 23,914.45. On the sectoral front, majority of the indices closed in the red.
The Nifty Auto was the top laggard, down 1.79 per cent, followed by the Nifty Media and Nifty IT, which were down 1.7 per cent and 1.2 per cent, respectively.
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The broader market indices also succumbed to the selling pressure and closed lower. The Nifty Midcap 100 fell 0.5 per cent, and the Nifty Smallcap 100 slipped 0.37 per cent.
The Nifty’s advance-decline ratio favoured the bears, with 2,073 stocks declining compared with just 1,445 stocks that gained.
From the Sensex pack, Adani Ports, Bajaj Finserv, Power Grid, NTPC and Titan were among the top movers. On the other hand, Asian Paints, HDFC Bank, M&M, HCL Tech, BEL and Infosys were the top losers.
The key reasons included rise in oil prices, extending the previous session’s surge today, as concerns over supply disruption intensified after the US and Iran exchanged strikes overnight.
Brent crude futures rose 1 per cent to $95.5 a barrel, while US West Texas Intermediate crude climbed 0.9 per cent to $91.02.
Global bond yields climbed back to the highest level in almost two decades.
Analysts said that rising oil prices have once again fueled inflation concerns and central banks may go for interest rate hikes.
The rate on 10-year Japanese government notes touched 3% for the first time since 1996, UK 30-year yields reached the highest since 1998 and the 10-year Treasury rate hit levels last seen January last year. (BVI)
