Stock markets closed lower on Monday due to selling in IT and FMCG shares as renewed tensions in West Asia triggered a rally in crude oil prices.
The 30-share BSE Sensex declined 307.24 points, or 0.40 per cent, to settle at 76,957.27 with 20 of its constituents ending lower and 10 with gains. During the day, it tanked 513.19 points, or 0.66 per cent, to 76,751.32.
The 50-share NSE Nifty dropped 95.25 points, or 0.39 per cent, to end at 24,080.40.
Weak trends in global markets and foreign fund outflows dented investor sentiment, analysts said.
Among the 30 Sensex firms, Adani Ports, ITC, Bharti Airtel, HDFC Bank, Infosys and Kotak Mahindra Bank were the major laggards.
Sun Pharma, ICICI Bank, Axis Bank and State Bank of India were among the gainers.
Brent crude, the global oil benchmark, jumped 3.63 per cent to USD 91.30 per barrel.
“Escalating tensions between the US and Iran have kept investors on edge, as fading prospects of a diplomatic breakthrough pushed crude oil prices and global bond yields higher. Rising crude oil prices and bond yields have renewed concerns over energy-led inflation and a higher interest rate environment, which could weigh on the earnings cycle,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
Meanwhile, the Fed chair’s recent comments after the Jackson Hole address have increased expectations of a potential September rate hike, keeping global yields elevated and contributing to near-term volatility in emerging markets, he added.
In Asian markets, South Korea’s Kospi and Shanghai’s SSE Composite ended higher, while Japan’s Nikkei 225 index and Hong Kong’s Hang Seng index settled lower.
Markets in Europe were trading mostly lower. US markets ended in negative territory on Friday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 5,039.80 crore on Friday, according to exchange data.
On Friday, the Sensex climbed 330.92 points, or 0.43 per cent, to settle at 77,264.51. The Nifty settled 84.80 points, or 0.35 per cent, higher at 24,175.65.
-PTI
