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.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Inappropriate for MLAs seeking free IPL tickets, says D.K. Suresh
Bengaluru: Bengaluru Milk Union Ltd President D.K. Suresh on Monday said it is inappropriate for MLAs to seek free IPL tickets, adding that those interested in watching matches should pay for them personally.
Speaking to reporters near his residence in Sadashivanagar, he said, “IPL is a commercial tournament and does not represent the country. It is not right for public representatives to focus too much on such matters.”
Referring to the recent controversy during the RCB celebrations, he said, “let us find out who benefited the most from the statements made during the incident.” He also pointed out that BJP MLAs had received IPL tickets as well.
Responding to discussions about relocating the Chinnaswamy Stadium, Suresh said the government has already approved the construction of a new stadium at a location he had proposed.
“I had suggested building a stadium in Surya City and submitted a proposal for it. Bengaluru needs four stadiums in four directions to cater to its growing population and encourage youth participation in sports,” he said.
He noted that apart from Kanteerava Stadium, KSCA, and the Football Stadium, there are limited facilities in the city.
“When I was a Lok Sabha member, I had proposed allocating 100 acres in my constituency at Surya City. The land was later earmarked and the plan approved,” he added.
Suresh said he has discussed the project with Minister Zameer Ahmed Khan, Rajiv Gandhi Housing Corporation Chairman Shivalingegowda, and Anekal MLA Shivanna.
“The Cabinet has now approved the project, and a stadium will be developed on around 50–60 acres,” he said.
He further added that he has requested the Deputy Chief Minister to build another stadium at Shivarama Karanth Layout through the BDA, where 40 acres have been allocated. Plans are also being discussed to develop a well-equipped stadium in Bidadi.
Commending state government's recent bilingual policy move, Suresh said forcing children to learn three languages could affect their comprehension.
“It is a good decision to make two languages compulsory. Learning a third language should be left to the choice of students and parents,” he said.
Responding to criticism from BJP leaders, he said their tendency is to oppose every decision of the government.
“To please their central leadership, they take a pro-Hindi stance. Instead, they should advocate for the adoption of Kannada in all states,” he said.
When asked about the earlier three-language policy under Congress, he said, “the situation is different now. Today, the focus should be on quality learning. Kannada should remain the primary language, while students and parents can choose an additional language.”
