1 day ago
Indian stocks retreat as US-Iran tensions lift oil, yields
Indian share prices fell at the end of the month.
The BSE Sensex and NSE Nifty both declined.
Investors were worried because tensions between the United States and Iran increased.
These tensions pushed oil prices higher.
Higher oil prices can raise inflation worries.
Global bond yields also rose, which made investors concerned about higher interest rates.
Foreign investors had also sold Indian shares.
These concerns led to selling in several sectors, including utilities, metals and technology.
BSE Sensex fell 307.24 points, or 0.40%, to 76,957.27.
NSE Nifty dropped 95.25 points, or 0.39%, to 24,080.40.
US-Iran tensions pushed crude oil and global bond yields higher.
Utilities, metals, services, power and FMCG stocks led sectoral declines.
Foreign institutional investors sold equities worth ₹5,039.80 crore on Friday.
- Who
- Indian investors, foreign institutional investors and companies listed on Indian stock exchanges.
- What
- Indian equity markets declined, with the BSE Sensex and NSE Nifty closing lower.
- Where
- Indian equity markets, including the Bombay Stock Exchange and National Stock Exchange of India.
- When
- On Monday, the final trading day of the month.
- Why
- Renewed US-Iran tensions raised crude oil prices and global bond yields, while investors also reacted to foreign fund outflows and concerns about tighter monetary policy.
Key facts
- BSE Sensex close
- 76,957.27, down 307.24 points or 0.40%
- NSE Nifty close
- 24,080.40, down 95.25 points or 0.39%
- Biggest Sensex decliner
- Adani Ports, down 4.11%
- HDFC Bank move
- Down 1.53% after Chief Executive Officer and Managing Director Sashidhar Jagdishan announced plans to seek reappointment
- Leading sectoral decline
- Utilities fell 2.64%
- Foreign investor sales
- Foreign institutional investors sold equities worth ₹5,039.80 crore on Friday
- Market backdrop
- Renewed US-Iran tensions lifted crude oil prices and global bond yields
Quotes
Vinod Nair
Head of Research at Geojit Investments Limited
“Escalating tensions between the US and Iran have kept investors on edge, as fading prospects of a diplomatic breakthrough pushed crude oil prices and global bond yields higher. Rising crude oil prices and bond yields have renewed concerns over energy-led inflation and a higher interest rate environment, which could weigh on the earnings cycle.”
thehansindia.com
“Investor sentiment was further tempered by caution ahead of the MSCI index rebalancing at the close-the first major test of the new closing auction mechanism-which added to expectations of heightened end-of-session volatility”
thehansindia.com
Sources
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