Sensex crashes over 900 points, Nifty50 falls below 23,600
What's the story
The Indian stock market witnessed another decline today, with the BSE Sensex and Nifty both opening sharply lower. The fall comes amid the ongoing US-Iran war and rising crude oil prices. At around 9:20 am, the Sensex was down 946 points or 1.2% at 75,918, while the Nifty slipped nearly 300 points to 23,571 amid broad-based selling. As many as 1,707 shares declined in opening trade against 633 advances on the NSE.
Market outlook
Continued volatility expected
Market analysts expect continued volatility in the indices as investors closely monitor developments in the West Asia conflict, crude oil price movements, and persistent foreign institutional investor (FII) selling. Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said external headwinds have pushed the market into a weak zone. He added that despite domestic institutional investors (DIIs) continuously buying in this uncertain global environment, their efforts aren't enough to offset sustained FII selling.
Investor activity
Foreign portfolio investors continued their selling spree
Foreign portfolio investors continued their selling spree, offloading domestic equities worth ₹6,267 crore during Wednesday's session. Domestic institutional investors partially offset the pressure by emerging as net buyers to the tune of ₹4,966 crore. US stocks ended lower on Wednesday as investors shifted focus from a relatively mild inflation reading to escalating hostilities and the broader implications of the US-Israeli war on Iran.
Global impact
Asian stocks fell on Thursday
Asian stocks fell on Thursday, extending a volatile week in global markets. A renewed rally in oil prices and rising stress in the private credit market added to investor concerns. Oil prices rose during Asian trading despite authorities announcing large releases of crude from strategic reserves to ease prices following the Iran conflict. Gold prices edged lower on Thursday as a stronger US dollar weighed on the metal.