Stock markets tumble nearly 1 pc on rising geopolitical tensions, boiling crude oil prices
Mumbai, Jun 13 (PTI): Equity benchmark indices Sensex and Nifty tumbled nearly 1 per cent on Friday as weak global markets and a spike in Brent crude oil prices after Israel attacked Iran's capital weighed on investor sentiment.
Falling for the second day in a row, the 30-share BSE Sensex dived 573.38 points or 0.70 per cent to settle at 81,118.60. During the morning trade, it tanked 1,337.39 points or 1.63 per cent to 80,354.59.
As many as 2,469 stocks declined while 1,516 advanced and 137 remained unchanged on the BSE.
The 50-share NSE Nifty dropped 169.60 points or 0.68 per cent to 24,718.60.
On a weekly basis, the BSE benchmark tanked 1,070.39 points or 1.30 per cent, and the Nifty declined 284.45 points or 1.13 per cent.
Investors stayed away from riskier assets amid fears of a full-blown war between Israel and Iran and foreign fund outflows.
"Rising tensions in the Middle East after Israel attacked key Iranian areas drove investors to safe-haven assets like gold as riskier equities continued to face battering. Along with fresh concerns of the US likely to impose unilateral tariffs over next few weeks and higher valuations of domestic equities resulted in consolidation of markets," Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
Among the Sensex firms, Adani Ports, ITC, State Bank of India, IndusInd Bank, HDFC Bank, Titan, Kotak Mahindra Bank and UltraTech Cement were the major laggards.
On the other hand, Tech Mahindra, Tata Consultancy Services, Sun Pharma and Maruti were the gainers.
The BSE midcap gauge declined 0.32 per cent and smallcap index dipped 0.30 per cent.
Among BSE sectoral indices, services tumbled 2.06 per cent, bankex (1.01 per cent), FMCG (0.94 per cent), financial services (0.85 per cent), metal (0.81 per cent) and power (0.75 per cent).
Healthcare index and realty were the only winners.
"Indian equity benchmarks experienced downward pressure, driven by weak global cues and foreign institutional outflows. Market sentiment was notably impacted by heightened geopolitical tensions following Israel’s military strike on Iran, which significantly increased risk aversion among investors. Although India’s CPI for May eased below the RBI’s comfort threshold, offering a positive macro signal, this was largely overshadowed by external headwinds.
"Brent crude prices climbed to near USD 76/barrel, their highest this year, raising fears of inflation if tensions persist," Vinod Nair, Head of Research, Geojit Investments Limited, said.
Global oil benchmark Brent crude jumped 7.44 per cent to USD 74.52 a barrel.
In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng settled lower.
European markets were quoting lower.
US markets ended in positive territory on Thursday.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 3,831.42 crore on Thursday, according to exchange data.
Meanwhile, a London-bound Air India plane carrying 242 passengers and crew crashed in Ahmedabad minutes after taking off from the airport on Thursday afternoon.
Air India has confirmed the death of 241 people in the plane crash. One passenger miraculously escaped.
On Thursday, the 30-share BSE Sensex dropped 823.16 points or 1 per cent to settle at 81,691.98. The Nifty tumbled 253.20 points or 1.01 per cent to 24,888.20.
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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.”
