Dalal Street Bloodbath: Sensex crashes 1400 points, Nifty dives 445 points as crude oil crosses USD 105
Indian benchmark indices opened in the red on Thursday (April 2) as tensions prevailed after US President Donald Trump's warning of intensified military actions against Iran
Sensex and NSE Nifty 50 both dropped over two per cent within minutes of the opening bell
Indian Equity benchmark indices Sensex and Nifty declined as it opened in red on Thursday (April 2). This comes amid rising geopolitical tensions following US President Donald Trump's warning of intensified military actions against Iran. Sensex and NSE Nifty 50 both dropped over two per cent within minutes of the opening bell, erasing gains from the previous session's relief rally.
The 30-share BSE Sensex plummeted by 1,433.72 points, or 1.96 per cent, to 71,700.60. The 50-share NSE Nifty dived 445.70 points, or 1.97 per cent, to 22,233.70 in the morning trade. The downward movement follows a period of brief recovery where the Nifty had closed 348 points higher and the Sensex had climbed 1187 points.
Market experts noted that the volatility is linked to the lack of a definitive ceasefire in West Asia. Market and Banking expert Ajay Bagga told PTI, "Trump Speech Highlights: Nothing new, no ceasefire announcement, threats to Iran, Hormuz reopening responsibility on countries importing through it, 2-3 weeks more of kinetic action, no off ramp, no talk of ground troops action. Markets disappointed as the same messaging was rehashed after building up expectations of a very significant announcement. US futures down, Indian futures down, Oil back at 105$."
All the 30-Sensex firms were trading lower, with Sun Pharmaceuticals, IndiGo, Adani Ports, Eternal, Larsen & Toubro, Asian Paints, NTPC, State Bank of India, Trent, Kotak Mahindra Bank, Axis Bank, and PowerGrid emerging as the major laggards. "With President Trump's declaration 'we are going to hit Iran extremely hard in the next two to three weeks,' market sentiments have again turned negative.
Broader Asian markets were trading lower, with South Korea's Kospi benchmark falling by 4.31 per cent, Japan's Nikkei 225 index declining 2.24 per cent, Hong Kong's Hang Seng plummeting 1.04 per cent, and Shanghai's SSE Composite index slipping 0.53 per cent. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 8,331.15 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 7,171.80 crore.
Brent crude, the global oil benchmark, traded 4.44 per cent higher to USD 105.65 per barrel.
Rupee opens at 1.3 per cent higher
The rupee recovered 130 paise from its record low level to trade at 93.19 against the US dollar on Thursday, just a day after the Reserve Bank's move to restrict banks' net open position in the onshore forward delivery market.
The rupee was trading at 93.53 to the dollar after ending the previous session at a new low of 94.83 on March 30. Currency and fixed income markets were closed on March 31 and April 1.
The domestic unit, however, faced pressure due to unabated withdrawal of foreign capital, strengthening dollar and rising crude oil prices amid volatile geopolitical situation, forex analysts said. The local currency breached the 95 level on Monday before closing at 94.70 versus the greenback. It had settled at a historic low of 94.84 against dollar on Friday, prompting the RBI to intervene.
With inputs from agencies
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