Mumbai: The Indian stock markets on Tuesday witnessed sharp losses in early trade, with equity benchmarks declining 1 per cent each amid uncertainty over a possible resolution to the West Asia conflict, ahead of a deadline set by US President Donald Trump to reopen the Strait of Hormuz.
Sensex opened 372 points or 0.50 per cent lower at 73,734, while Nifty began the session at 22,838.
Later in early trade, the 30-scrip basket declined as much as 1.11 per cent or 824.44 points, hitting an intraday low of 73,282, while the 50-share index plummeted by 1 per cent or 248.95 points to 22,719.30, an intraday low amid selling pressure in all sectors.
Sector-wise, financial, auto, real estate and pharma indices declined up to 2 per cent. Meanwhile, Interglobe Aviation (IndiGo), Eternal, Max Healthcare, M&M, Eicher Motors, Apollo Hospitals and Dr Reddy’s were among the top laggards.
According to analysts, recent price action indicates improving sentiment, backed by buying at lower levels.
“The undertone remains positive, but sustainability depends on strength above key resistance zones. Traders should stay selective and wait for price confirmation near crucial levels before taking fresh positions,” the analysts advised.
Meanwhile, the oil commodity market is in bullish territory near its highs, with Brent crude futures jumping as much as 1.69 per cent to $111.63 per barrel, and US WTI crude trading at $115.64, an increase of about 3 per cent.
Moreover, Asian stocks showed mixed performance, with key indices, the Nikkei, Hang Seng, and KOSPI, trading flat, down 0.71 per cent, and up 0.40 per cent, respectively.
In the US, Wall Street closed mildly positive, with the S&P 500 closing at 6,611.83, up 29.14 points or 0.44 per cent, while the tech-heavy Nasdaq settled at 21,996.34, an increase of 117.16 points or 0.54 per cent.
FIIs remained net sellers in India on Monday and offloaded Rs 8,167 crore, while DIIs provided support by purchasing equities worth Rs 8,000 crore.
(IANS)
