Sensex, Nifty Extend Losses in Midday Trade, Tracking Fresh Spikes in Crude Prices Amid Escalating Iran War

Mumbai, July 24: Indian benchmarks continued trading lower through mid-day session on Friday, extending losses to fifth straight session with the Sensex and Nifty at their lowest levels in over a week tracking fresh spike in crude prices amid escalating war between Iran and Saudi Arabia that undermined optimism built during early part of the week.  

At 11:48 am, the BSE Sensex traded lower by 615.38 points or 0.81 per cent at 75,776.01 and the NSE Nifty declined by 172.65 points or 0.72 per cent at 23,696.95. 

Sell-off on domestic bourses tracked overnight weakness on Wall Street along with sharp declines across Asian indices which too came under pressure after Houthi rebels targeted Saudi oil tankers in the Red Sea followed by Trump’s warning of “major military punishment” against Iran. Selling remained broad-based across heavyweights and sectors. 

Gainers & Losers 

Trade stayed skewed towards the negative direction though a few counters did manage to buck the trend. Cipla topped the gainers’ list on BSE, surging 2.23 per cent to Rs 1,424 LTP from its previous close of Rs 1,393. HDFC Life Insurance gained 0.74 per cent to Rs 555 against Rs 550.95 earlier. Shares of Reliance Industries were trading higher by 0.74 per cent to Rs 1,281.6 from Rs 1,272.2, HCL Technologies added 0.41 per cent to Rs 1,249.8 from Rs 1,244.7 and Adani Enterprises edged up by 0.30 per cent to Rs 3,019 from Rs 3,010. 

On the flip side, Bajaj Finance suffered biggest losses on BSE, declining 3.06 per cent to Rs 1,008 from Rs 1,039.8 earlier. Eternal slipped 2.96 per cent to Rs 278.6 from Rs 287.1, Mahindra & Mahindra shed 2.42 per cent to Rs 3,151.4 from Rs 3,229.7 and Infosys dropped 2.40 per cent to Rs 1,022.3 from Rs 1,047.4. Shriram Finance ended 2.21 per cent lower at Rs 1,003.1 from Rs 1,025.8. 

Broad Markets & Sectoral Performance 

Other broader market indices ended near universally in the red with Nifty Financial Services declining 0.79 per cent, Nifty Bank shed 0.60 per cent and Nifty Midcap Select ended 0.67 per cent lower, even as India VIX jumped by 5.93 per cent.  

Sectorally, Nifty Media was the only index in green, gaining 0.34 per cent while Nifty Auto declined by 1.18 per cent and Nifty Metal ended 0.76 per cent lower. 

Oil Prices 

Benchmark Brent crude was trading above the key $100 per barrel mark on Friday after climbing by its biggest amount in months during the previous session. Brent futures eased to $99.97 a barrel, still set for a 13.5 per cent weekly gain, while US West Texas Intermediate slipped to $91.49, up 10.9 per cent on the week. Both benchmarks jumped on Thursday by their most since March after Yemen’s Houthi movement struck two Saudi oil tankers in the Red Sea. Kazakhstan said it would make temporary crude output cuts after damage to its main export pipeline spooked investors who fear supply could tighten further if the war between Iran and Saudi Arabia escalates. 

Asian Stocks 

Asian stocks followed Wall Street sharply lower, with Tokyo’s Nikkei 225 tumbling 2.79 per cent and Hong Kong’s Hang Seng Index falling 1.15 per cent. Pakistan’s KSE 100 sank 1.54 per cent and Australia’s S&P/ASX 200 declined 1 per cent as well as war risk dragged down risk appetite in the region. Thailand’s SET Index and Vietnam’s HNX 30 were among the few gainers in Asia. 

US Markets on Thursday 

US stocks ended sharply lower on Thursday with the Nasdaq Composite plummeting 2.15 per cent and the S&P 500 dropping 1.21 per cent as inflation fears linked to rising oil prices rattled investors. The Dow Jones Industrial Average also fell 0.97 per cent, while Mexican stocks bucked the regional downtrend with S&P/BMV IPC jumping up 1.54 per cent. Losses in US markets overnight kept Asian markets including India in negative terrain through morning trade on Friday. 

Iran War 

US President Donald Trump threatened “major military punishment” on Iran after Houthi forces attacked two Saudi oil tankers on Thursday in the Red Sea, saying Tehran had “not received enough pain yet.” The US military launched strikes against Iran for the 13th straight night Thursday in response. Meanwhile, Iranian forces targeted US-associated military sites in Jordan and Kuwait on Thursday night. Yemen’s Houthi forces said Thursday they would blockade the Saudi Arabian port of Hodeidah by sea after cutting the Saudi pipeline on Wednesday. Houthi militias also threatened to close the Bab el-Mandeb strait at the entrance to the Red Sea, which would be the latest major shipping chokepoint to shut down if Iran’s closing of the Strait of Hormuz last month is included. Oil extended gains towards $100 after those announcements. The five-month-old war has killed thousands and fuelled concerns about a broader global slowdown. 

Indian benchmarks continued their fall at the open on Friday, registering fresh losses for the fifth straight session with the Sensex trading down 600 points as escalating Iran-Saudi Arabia tensions on fears of a supply disruption pressured market sentiment and undermined the positive jobs report that came out earlier in the day. At 9: 33 am, the Sensex crashed 600.36 points or 0.79 per cent to 75,791.03 and Nifty fell 168.75 points or 0.71 per cent to 23,700.85. 

Sources

• BSE
• NSE