Mkts slump for 3rd day on rising oil prices; Sensex falls 999 points

Bearish sentiment | Investors’ wealth drops by `7.17L cr in 3 days of mkt fall

PTI mumbai

Equity benchmark indices Sensex and Nifty tumbled over 1% on Friday, falling for the third consecutive day, as a sharp rally in crude prices and massive selling in IT counters weighed heavily on investor sentiment.

Unabated foreign fund outflows and a negative trend in global markets amid prolonged conflict and continued disruption in the Strait of Hormuz added to the gloom. The 30-share BSE Sensex dropped 999.79 points, or 1.29%, to settle at 76,664.21. During the day, it plunged 1,260.13 points or 1.62% to 76,403.87.

Investors' wealth eroded by ₹7.17 lakh crore in three days of market fall. In three days, the 30-share BSE Sensex tanked 2,609.12 points or 3.29%.. The market capitalisation of BSE-listed firms eroded by ₹7.17 lakh crore to ₹461.49 lakh crore ($4.89 trillion) in three days. 

A total of 2,905 stocks declined, while 1,326 advanced and 158 remained unchanged on the BSE. The wider gauge NSE Nifty slumped 275.10 points, or 1.14%, to end at 23,897.95. On the weekly front, the BSE benchmark tanked 1,829.33 points, or 2.33%, and the Nifty dropped 455.6 points, or 1.87%.

"Indian equity markets extended their decline for a third consecutive session, as renewed risk-off sentiment weighed on investor confidence. Ongoing tensions in the Middle East, coupled with persistent weakness in the IT sector, continued to pressure an already fragile market backdrop. Volatility also increased, with the India VIX rising 6%, reflecting heightened fear and uncertainty amid the prolonged conflict and continued disruption in the Strait of Hormuz, with no meaningful signs of de-escalation," Ponmudi R, CEO of Enrich Money, said.

From the Sensex constituents, Infosys dived 7.09% after its revenue growth forecast for FY27 came in lower than market expectations. HCL Tech, Tata Consultancy Services, Tech Mahindra, Sun Pharma, Asian Paints and ICICI Bank were also among the major laggards. In contrast, Trent, Bajaj Finance, State Bank of India, HDFC Bank and Kotak Mahindra Bank were the winners.

The BSE SmallCap Select index dropped 0.95% and the MidCap Select index dipped 0.91%. All sectoral indices ended lower. The BSE IT tanked 5.13%, healthcare 1.35%, telecommunication 1.33%, realty 1.30%, services 1.17% and consumer discretionary 1.04%.

"Indian markets extended their weakness for a third consecutive session, closing on a cautious and lower note as subdued global cues, weak earnings sentiment from IT majors, rising crude oil prices, inflation concerns, and currency pressure weighed on overall sentiment," Gaurav Garg, analyst at Lemonn Markets Desk, said.

Brent crude traded 2.17% higher at $107.3 per barrel. Foreign institutional investors (FIIs) offloaded equities worth ₹3,254.71 crore on Thursday, according to exchange data.