Stock markets tumble in early trade amid weak global cues, FII outflows
Mumbai (PTI): Equity benchmark indices Sensex and Nifty fell sharply in early trade on Tuesday in line with weak global cues, continuous foreign fund outflows and selling pressure in IT stocks and Reliance Industries.
Investor sentiment also turned cautious ahead of the US Federal Reserve's policy meeting outcome, which is expected to provide cues on the interest rate trajectory.
The 30-share BSE Sensex plunged by 636.22 points, or 0.75 per cent, to 84,466.47 in early trade. The 50-share NSE Nifty depreciated by 193.25 points, or 0.74 per cent, to 25,767.30.
Among the Sensex firms, Asian Paints, Trent, Mahindra & Mahindra, Tata Steel, Tata Consultancy Services, Reliance Industries, Tata Motors Passenger Vehicles, Bharat Electronics Ltd, Tech Mahindra, NTPC, HCL Technologies, Infosys and UltraTech Cement were the laggards.
Bharti Airtel and Hindustan Unilever were the only gainers in the morning trade.
The US Federal Reserve is set to begin its two-day policy meeting later on Tuesday, where the central bank's Federal Open Market Committee (FOMC) will decide on key benchmark interest rates for the world's largest economy.
The outcome will be announced on Wednesday. Meanwhile, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 655.59 crore on Monday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 2,542.49 crore, according to exchange data.
"Despite hopes pinned on a potential US Fed cut on December 10, sentiment remains fragile with FIIs continuing to sell, the rupee weakening towards 90/USD, and global cues turning softer," Prashanth Tapse , Senior VP (Research), Mehta Equities Ltd, said.
In Asian markets, Hong Kong's Hang Seng index, South Korea's KOSPI and Shanghai's SSE Composite index were trading in the negative territory while Japan's Nikkei 225 benchmark was quoting in the green zone.
The US markets ended lower in overnight deals on Monday as investors turned cautious ahead of the Fed meeting.
Brent crude, the global oil benchmark, slipped 0.21 per cent to USD 62.36 per barrel.
On Monday, the 30-share BSE Sensex plunged by 609.68 points to close at 85,102.69.
Snapping a two-day gaining streak, the 50-share NSE Nifty declined by 225.90 points to settle at 25,960.55.
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Stopping Iran of greater importance than oil prices: Trump
Washington (PTI): US President Donald Trump on Thursday said stopping the “evil empire” in Iran was of greater importance to him than oil prices, which have been ruling high since the US and Israel launched a war on Iran on February 28.
Iranian attacks on ships and oil infrastructure in West Asia have pushed crude prices above USD 100 a barrel.
“The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money. BUT, of far greater interest and importance to me, as President, is stopping an evil Empire, Iran, from having Nuclear Weapons, and destroying the Middle East and, indeed, the World. I won’t ever let that happen,” Trump said in a post on Truth Social.
Launched on February 28, Operation Epic Fury against Iran has divided political opinion in the US, with Democrats demanding public hearings with testimony from top Trump administration officials.
White House officials, including Secretary of State Marco Rubio, have held classified briefings with lawmakers since the attacks on Iran began. However, there have been claims that Trump has been sending mixed signals on the progress achieved in the war.
"Here we are well into the second week, and it is still the case that the Trump administration cannot explain the reasons that we entered this war, the goals we're trying to accomplish, and the methods for doing that," Democrat senator Elizabeth Warren was quoted as saying after a classified briefing.
White House press secretary Karoline Leavitt, in a post on X, accused the “left-wing media” of pushing a “fake narrative” about mixed messaging about the objectives of Operation Epic Fury.
“From the beginning, President Trump and his entire team have consistently laid out clear objectives to the American people about what the US Military seeks to accomplish through these ongoing successful major combat operations,” Leavitt said.
“Destroy the terrorist Iranian regime’s missiles and raze their missile industry to the ground. Annihilate the terrorist Iranian regime’s navy. Ensure the regime’s fellow terrorist proxies can no longer destabilise the region and attack our forces; Guarantee the terrorist Iranian regime cannot obtain a nuclear weapon,” Leavitt said, spelling out the objectives of Operation Epic Fury.
Extending support to the war, Senate Majority Leader John Thune told reporters in the Capitol on Tuesday, the war could be "generational in terms of its impact."
“Not only for that region, but for the entire world, because they continued – Iran – to be the largest state sponsor of terrorism in the world. They are on the way to nuclear capability, and they're holding that entire region hostage and American interests as well,” Thune said at a weekly press conference.
"So I think this was an important mission to accomplish, and hopefully it'll be accomplished soon,” Thune said.
