Benchmark stock market indices closed after witnessing a selling spree on Monday as sentiment turned bearish over rising tensions between Iran and the US.
The S&P BSE Sensex lost 1,048.34 points to close at 80,238.85, while the NSE Nifty50 tanked 312.95 points to end at 24,865.70.
Vinod Nair, Head of Research, Geojit Investments Limited, said that rising geopolitical tensions in the Middle East have unsettled global markets, with concerns over possible extension of the situation given the killing of Iran’s supreme leader.
“Rising crude oil prices and a weakening INR reflect concerns over potential disruptions to oil supply, which could increase inflationary pressures in India and impact fiscal and strain margins for energy and chemical-dependent sectors,” he added.
Most sectoral indices closed in red, with auto and oil stocks falling the most.
After the closing bell, Bharat Electronics Ltd ended as the top gainer, rising 2.09%. It was followed by Sun Pharmaceutical Industries Ltd, which gained 0.84%, and ITC Ltd, up 0.38%.
IndusInd Bank Ltd was the worst performer, falling 6.25%. Larsen and Toubro Ltd dropped 5.00%, Adani Ports and Special Economic Zone Ltd declined 3.33%, Maruti Suzuki India Ltd slipped 3.29%, and Asian Paints Ltd was down 2.89%, as selling pressure remained strong across several heavyweights.
“The India VIX has edged higher, signalling increased uncertainty and risk aversion among market participants. Investors are rotating toward traditional safe-haven assets and adopting a cautious stance, awaiting greater clarity. While FII selling has intensified after the spiking of crude prices,” said Nair.
