Markets slide as West Asia tensions push Sensex down 700 points
Crude oil crossing $100 a barrel amid the Iran-US standoff dragged the Sensex and Nifty sharply lower in early trade
Ongoing tension in West Asia and the escalating standoff between Iran and the United States hit the stock market clearly today. Disruption at the Strait of Hormuz, a key route for crude oil shipments, pushed crude prices past 100 dollars a barrel, and the market felt the direct impact.
These factors triggered a sharp fall in the domestic stock market today. As soon as trading opened, the 30-share Sensex fell more than 700 points and opened at 74,309.16. The 50-share Nifty opened at 23,270.30. Among the Sensex's 30 stocks, IndiGo saw the steepest fall, trading down 2.55 percent at 4842.05.
When the market opened at 9:15 am, only four of the Sensex's 30 stocks were trading higher, while the remaining 26 were in the red. The four gainers were HCL Tech (1.09 percent), Tech Mahindra (1.04 percent), Infosys (0.82 percent) and TCS (0.39 percent).
The other 26 stocks were in losses. The steepest falls were seen in IndiGo (2.55 percent), Bajaj Finance (2.39 percent), Tata Steel (2.37 percent), UltraTech Cement (2.20 percent) and Axis Bank (1.98 percent).
Several reasons are being cited for the fall, including the escalating US-Iran conflict in West Asia, a record surge in crude oil prices to 108 dollars a barrel, rising bond yields, a weaker rupee and heightened investor interest in IPOs.
The market had fared somewhat better on September 10. That day the Sensex opened nearly 100 points higher at 74,742.54, touching a high of 74,910.96 and a low of 74,598.47. It closed 0.19 percent, or 138.36 points, higher at 74,902.59, with 15 of the 30 stocks gaining and 15 declining.
The Nifty had opened 23,446.60 points higher that day, with a high of 23,494.95 and a low of 23,380.10. It closed up 0.20 percent, or 46.30 points, at 23,477.80, with 24 of the 50 stocks gaining and 26 declining.
