Mkts extend losses as crude hits $100 amid US-Iran imbroglio

Sensex slides sharply | Investors await clarity on US-Iran conflict

PTI

mumbai

Stock markets fell for the second consecutive day on Thursday, with the benchmark Sensex tumbling 852.49 points, as crude oil prices once again breached the $100 per barrel mark amid stalled US-Iran negotiations.

Sustained foreign fund outflows, along with a weak trend in Asian and European equities, also unnerved investors.

The 30-share BSE Sensex tumbled 852.49 points, or 1.09%, to settle at 77,664. During the day, it slumped 942.31 points, or 1.20%, to 77,574.18. A total of 2,517 stocks declined, while 1,762 advanced and 170 remained unchanged on the BSE.

The 50-share NSE Nifty dropped 205.05 points, or 0.84%, to end at 24,173.05.

"Indian equity markets extended their decline, turning decisively negative as geopolitical tensions intensified. Sentiment deteriorated following stalled Iran peace talks despite US President Donald Trump announcing an indefinite ceasefire extension, which lacked clear confirmation from Iran. Escalating concerns around tightening control over the Strait of Hormuz and the continuation of the US naval blockade pushed the Middle East situation back to a critical juncture," Ponmudi R, CEO of Enrich Money, said.

From the Sensex pack, Trent, Bajaj Finserv, Tech Mahindra, Mahindra & Mahindra, Infosys and HDFC Bank were among the major laggards. In contrast, Adani Ports, Larsen & Toubro, Sun Pharma, Bharti Airtel and Bharat Electronics were the winners.

Brent crude, the global oil benchmark, traded 1.89% higher at $103.8 per barrel.

"Indian markets extended their losing streak, with the Nifty witnessing back-to-back bearish sessions and correcting over 400 points across the last two trading days. The price action reflects a clear shift in market tone — from resilience to risk aversion — as global uncertainties intensify and domestic triggers fail to provide immediate support," Hariprasad K, research analyst and founder of Livelong Wealth, said.

The BSE MidCap Select index declined 0.39%, and the SmallCap Select index dipped 0.34%.

On the sectoral front, PSU Bank dropped 2.36%, Auto (2.27%), Realty (1.91%), Consumer Discretionary (1.71%), Consumer Durables (1.63%) and Bankex (1.46%).

On the other hand, Healthcare jumped 1.66%, Capital Goods (0.40%), Power (0.40%) and Industrials (0.11%).

"Concerns surrounding disruptions in the Strait of Hormuz have significantly dented investor confidence, introducing a fresh layer of uncertainty into global markets. This has directly translated into a spike in crude oil prices. For an import-dependent economy like India, this creates a dual pressure, rising inflation expectations and stress on corporate margins," Hariprasad said.