Sensex, Nifty tank in early trade over crude oil price rise; TCS falls 6%
The S&P BSE Sensex fell 763.45 points, or 1.02%, to 73,886.39 in early trade, while the NSE Nifty50 declined 213.75 points, or 0.91%, to 23,269.80.
Benchmark stock market indices opened lower on Wednesday, falling sharply, led by profit bookings in IT stocks and a rise in crude oil prices following the fresh escalation in the Iran-US war.
The S&P BSE Sensex fell 763.45 points, or 1.02%, to 73,886.39 in early trade, while the NSE Nifty50 declined 213.75 points, or 0.91%, to 23,269.80.
The rupee also weakened, opening 0.2% lower at 95.4475 against the US dollar compared with its previous close of 95.2650, reflecting continued pressure from higher crude oil prices and global uncertainty.
Broader markets were also under pressure. The Nifty Midcap 100 fell 0.84%, while the Nifty Smallcap 100 declined 0.66%. India VIX, often referred to as the market's fear gauge, jumped 8.22%, indicating rising investor nervousness.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the mild escalation in the West Asia conflict has again pushed up Brent crude price to close to $97 indicating no respite to India from the energy shock.
"Rupee has edged down to 95.26 to the dollar. The sustained fall in the rupee has been arrested for now but the rising current account deficit and sustained FPI outflows are areas of concern. The RBI commentary and actions on June 5th will be keenly watched by the market," said Vijaykumar.
Selling was widespread across the Sensex pack.
Tata Consultancy Services was the biggest loser, falling 5.73%, followed by Tech Mahindra at 3.31%, Infosys at 2.99%, HCL Technologies at 2.67% and Eternal at 2.15%.
Other notable losers included ITC, Bajaj Finserv, Axis Bank, SBI, Bajaj Finance and NTPC.
Only a handful of stocks managed to stay in positive territory. Adani Ports and Special Economic Zone gained 1.04%, Maruti Suzuki rose 0.19%, and Bharti Airtel added 0.02%.
He added that while global markets such as the US, South Korea, Taiwan and Japan continue to benefit from strong earnings expectations, India's outlook remains more challenging.
"In contrast, in India earnings growth in FY27 will be modest weighed down by lower growth and higher inflation. All these factors have impacted sentiments in the market. The saving grace is the confidence shown by the retail investors who continue to invest money despite the headwinds," Vijayakumar said.
Benchmark stock market indices opened lower on Wednesday, falling sharply, led by profit bookings in IT stocks and a rise in crude oil prices following the fresh escalation in the Iran-US war.
The S&P BSE Sensex fell 763.45 points, or 1.02%, to 73,886.39 in early trade, while the NSE Nifty50 declined 213.75 points, or 0.91%, to 23,269.80.
The rupee also weakened, opening 0.2% lower at 95.4475 against the US dollar compared with its previous close of 95.2650, reflecting continued pressure from higher crude oil prices and global uncertainty.
Broader markets were also under pressure. The Nifty Midcap 100 fell 0.84%, while the Nifty Smallcap 100 declined 0.66%. India VIX, often referred to as the market's fear gauge, jumped 8.22%, indicating rising investor nervousness.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the mild escalation in the West Asia conflict has again pushed up Brent crude price to close to $97 indicating no respite to India from the energy shock.
"Rupee has edged down to 95.26 to the dollar. The sustained fall in the rupee has been arrested for now but the rising current account deficit and sustained FPI outflows are areas of concern. The RBI commentary and actions on June 5th will be keenly watched by the market," said Vijaykumar.
Selling was widespread across the Sensex pack.
Tata Consultancy Services was the biggest loser, falling 5.73%, followed by Tech Mahindra at 3.31%, Infosys at 2.99%, HCL Technologies at 2.67% and Eternal at 2.15%.
Other notable losers included ITC, Bajaj Finserv, Axis Bank, SBI, Bajaj Finance and NTPC.
Only a handful of stocks managed to stay in positive territory. Adani Ports and Special Economic Zone gained 1.04%, Maruti Suzuki rose 0.19%, and Bharti Airtel added 0.02%.
He added that while global markets such as the US, South Korea, Taiwan and Japan continue to benefit from strong earnings expectations, India's outlook remains more challenging.
"In contrast, in India earnings growth in FY27 will be modest weighed down by lower growth and higher inflation. All these factors have impacted sentiments in the market. The saving grace is the confidence shown by the retail investors who continue to invest money despite the headwinds," Vijayakumar said.
