Mumbai: Indian stock markets ended lower on Tuesday due to investor caution amid rising tensions between Israel and Iran. Higher global crude oil prices and worries about the upcoming US Federal Reserve interest rate decision also affected investor mood.
The 30-share BSE Sensex fell by 212.85 points, or 0.26%, to close at 81,583.30. During the trading day, it dropped as much as 369.14 points to touch a low of 81,427.01. The broader NSE Nifty also ended in the red, slipping 93.10 points, or 0.37%, to settle at 24,853.40.
Analysts said the markets saw some profit-booking after a strong rally on Monday. With geopolitical tensions rising and oil prices climbing, many investors chose to wait and watch. There is also uncertainty ahead of the US Federal Reserve’s interest rate decision expected later this week.
Among the major laggards in the Sensex pack were Sun Pharma, Eternal, Tata Motors, Bajaj Finance, IndusInd Bank, and Bajaj Finserv. On the other hand, Tech Mahindra, Infosys, Asian Paints, and Maruti were among the top gainers.
Global cues were mixed. In Asia, markets like South Korea's Kospi and Japan's Nikkei 225 ended in the green, while Shanghai's SSE Composite and Hong Kong’s Hang Seng closed lower. European markets were trading in the red during mid-session deals. US markets, however, closed higher on Monday.
Brent crude oil, the global benchmark, rose 1.69% to reach USD 74.47 per barrel. The price increase was driven by fears of supply disruptions due to the ongoing Middle East conflict.
Foreign Institutional Investors (FIIs) were net sellers, offloading shares worth Rs 2,539.42 crore on Monday. Meanwhile, Domestic Institutional Investors (DIIs) continued their buying streak, picking up equities worth Rs 5,780.96 crore.
On Monday, the Sensex had surged 677.55 points to close at 81,796.15, while the Nifty jumped 227.90 points to end at 24,946.50. Tuesday’s decline was seen as a pause after Monday’s strong gains.
(With PTI Inputs)
