Markets In Freefall As Middle East Unrest Hits

Mumbai: Equity benchmark indices Sensex and Nifty tumbled nearly 1.5 per cent on Monday due to heavy selling in banking, finance and auto stocks amid rising geopolitical risks in the Middle East and weakness in Japanese markets. Besides, profit-taking in frontline stocks like Reliance Industries after a record-breaking rally and foreign fund outflows added to the gloom, analysts said. Declining for the second straight session, the BSE Sensex tumbled 1,272.07 points or 1.49 per cent to settle at 84,299.78. During the day, it plunged 1,314.71 points or 1.53 per cent to 84,257.14. A total of 2,223 stocks declined, 1,819 advanced and 151 remained unchanged on the BSE. The NSE Nifty tanked 368.10 points or 1.41 per cent to 25,810.85.

“Nifty-50 had its worst day in nearly two months on Monday fuelled by weak Asian markets (led by Japan), rising tensions in the Middle East and fear of funds moving to China based on recent measures taken by its government,” said Deepak Jasani, head (retail research), HDFC Securities.

The BSE midcap gauge declined 0.28 per cent, while smallcap index climbed 0.07 per cent. “This sharp decline was primarily driven by profit booking after recent highs and heightened geopolitical tensions that have unsettled investor sentiment. The biggest drag on the index was Reliance Industries, which fell by 3 per cent, significantly contributing to the overall market decline,” added Vikram Kasat, head (advisory), PL Capital - Prabhudas Lilladher.