Sensex, Nifty tumble 1 pc on weak global trends, geopolitical tensions
Mumbai, Jun 12 (PTI): Benchmark Sensex tanked 823 points on Thursday following a selloff in oil & gas, power and capital goods shares in tandem with weak global market trends amid growing tensions in the Middle East.
The 30-share BSE Sensex dropped 823.16 points or 1 per cent to settle at 81,691.98 with 27 of its constituents declining and three ending higher. During the day, it plunged 991.98 points or 1.20 per cent to 81,523.16.
Snapping its six-day winning streak, the broader NSE Nifty tumbled 253.20 points or 1.01 per cent to 24,888.20.
Fresh foreign fund outflows also dented investors' sentiment, traders said.
Among Sensex stocks, Tata Motors, Titan, Eternal, Power Grid, Tata Steel, Larsen & Toubro, Mahindra & Mahindra and Hindustan Unilever were among the biggest laggards.
Bajaj Finserv, Asian Paints and Tech Mahindra were the gainers.
"Consolidation in domestic markets is evolving into a broad-based trend, now extending to large-cap stocks. Valuation concerns and rising oil prices -- driven by Middle East tensions -- are fuelling risk aversion among investors.
"Adding to the uncertainty, the US is considering unilateral tariff hikes on several key trading partners, with a decision expected within the next one to two weeks, ahead of an early July deadline," Vinod Nair, Head of Research, Geojit Investments Limited, said.
The BSE midcap gauge tanked 1.52 per cent and smallcap index dropped 1.38 per cent.
Among sectoral indices, power tumbled 2.19 per cent, utilities (2.18 per cent), oil & gas (2.10 per cent), realty (2.07 per cent), consumer durables (2.02 per cent), industrials (1.98 per cent), auto (1.71 per cent), consumer discretionary (1.67 per cent) and metal (1.63 per cent).
As many as 2,729 stocks declined while 1,282 advanced and 140 remained unchanged on the BSE.
"The sell-off was triggered by a combination of factors, including renewed geopolitical tensions between Israel and Iran, a rise in crude oil prices, and expiry-related pressure following the breakdown of a key support level. These developments have made market participants more cautious," Ajit Mishra - SVP, Research, Religare Broking Ltd, said.
Meanwhile, a London-bound Air India plane carrying 242 passengers and crew crashed in a residential area minutes after taking off from the Ahmedabad airport on Thursday afternoon. Many people were feared killed.
Shares of aircraft manufacturer Boeing plunged nearly 8 per cent in pre-market trade on Thursday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 446.31 crore on Wednesday, according to exchange data.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said investors exited stocks at will weighed down by weak global sentiment coupled with the possibility of Israel attacking Iran and renewed tariff threat by US President Donald Trump".
In Asian markets, South Korea's Kospi and Shanghai's SSE Composite index settled in the positive territory, while Japan's Nikkei 225 index and Hong Kong's Hang Seng ended lower. Equity markets in Europe were trading in the negative territory.
US markets ended lower on Wednesday.
Global oil benchmark Brent crude declined 1.43 per cent to USD 68.77 a barrel.
On Wednesday, the 30-share BSE Sensex rose by 123.42 points or 0.15 per cent to settle at 82,515.14. The Nifty ended 37.15 points or 0.15 per cent up at 25,141.40.
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UDF leaders see local body poll trends as pointer to 2026 Assembly elections in Kerala
Thiruvananthapuram (PTI): Buoyed by the strong performance of the Congress-led UDF in the local body polls, KPCC president Sunny Joseph said on Saturday that the front's results indicated the people had rejected the LDF government.
According to early trends, the UDF was leading in more grama panchayats, block panchayats, municipalities and corporations than the LDF.
The local body polls were held in two phases in the state earlier this week.
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Speaking to reporters here, Joseph said the people of Kerala had extended their support to the UDF.
"We could expose the LDF government’s anti-people stance and the people understood it. The LDF’s fake propaganda was rejected by the people. The UDF is moving towards a historic victory," he said.
He said a united effort, proper preparations, good candidate selection and hard work had resulted in the Congress and the UDF’s victory in the elections.
Asked about the prospects in the Thiruvananthapuram Corporation, Joseph said the party was studying the matter and would comment later.
LDF convenor T P Ramakrishnan said the results would be closely examined.
According to him, the government had done everything possible for the people.
"Why such a verdict happened will be examined at the micro level. People’s opinion will be considered and further steps will be taken," he said.
He added that decisions would be taken after analysing the results. "If any corrective measures are required, we will initiate them and move forward," he said.
AICC leader K C Venugopal said the results showed that people had begun ousting those who, he alleged, were responsible for the loss of gold at Lord Ayyappa’s temple.
"This trend will continue in the Assembly elections as well. It is an indication that the people are ready to bring down the LDF government," he said.
Venugopal said the UDF had registered victories even in CPI(M) and LDF strongholds.
"I congratulate all UDF workers for their hard work. Congress workers and leaders worked unitedly," he said.
Referring to remarks made by Chief Minister Pinarayi Vijayan against the Congress on polling day, Venugopal said the voters had responded through the verdict.
"I do not know whether the chief minister understands that the people are against him. Otherwise, he does not know the sentiment of the people. The state government cannot move an inch further," he said.
He said the results indicated a strong comeback for the UDF in Kerala.
Asked whether the Sabarimala gold loss issue had affected the LDF in the local polls, Venugopal said the CM and the CPI(M) state secretary did not take the issue seriously.
"We took a strong stand on the matter. The BJP played a foul game in it," he alleged.
On the BJP's role in the local body elections, Venugopal alleged that the party operated with the CPI(M) 's tacit support.
"The CPI(M) supported the central government on issues such as PM-SHRI, labour codes and corruption in national highway construction. The CPI(M) is facing ideological decline, and the state government’s policies are against the party’s own decisions," he said.
Meanwhile, LDF ally Kerala Congress (M) leader Jose K Mani said the party could not win all the wards it had expected in the elections.
He congratulated winners from all parties and said the party would closely examine the losses and identify shortcomings. "Later, we will take corrective measures," he added.
Senior Congress leader and MP Rajmohan Unnithan said the trends in the local body elections indicated that the UDF would return to power in the 2026 Assembly elections.
"We will win 111 seats as in 1977 and return to power in 2026. The anti-government sentiment of the people is reflected in the elections," he said.
Unnithan said the people were disturbed and unhappy with the present government.
"The trend indicates the end of the LDF government," he added.
CPI(M) MLA M M Mani said the people had shown ingratitude towards the LDF despite benefiting from welfare schemes.
"After receiving all welfare schemes and living comfortably, people voted against us due to some temporary sentiments. Is that not ingratitude," he asked.
Mani said no such welfare initiatives had taken place in Kerala earlier.
"People are receiving pensions and have enough to eat. Even after getting all this, they voted against us. This is what can be called ingratitude," he said.
Muslim League state president Panakkad Sayyid Sadiq Ali Shihab Thangal said the results were beyond expectations.
"The outcome points towards the Secretariat in Thiruvananthapuram, indicating that a change of government is imminent. We are going to win the Assembly election," he said.
