Mumbai: The BSE Sensex dropped 1112.74 points to 76,437.51 on Monday. The NSE Nifty fell 328.95 points to 23,721.65. The Stock Market benchmark indices
slumped after the US-Iran talks in Islamabad ended without a deal due to “excessive demands” made by the American side, as claimed by Tehran. Meanwhile, US President Donald Trump’s order of a naval blockade of the Strait of Hormuz has escalated tensions with Iran after talks failed to resolve disputes over Tehran’s nuclear ambitions.
All the 30-Sensex firms were in the Red. NTPC, Bharat Electronics, Power Grid, Bharti Airtel, Titan, and Sun Pharma were the biggest laggards. Brent crude, the global oil benchmark, rallied 7.33 per cent to USD 102.2 per barrel.
What is the reason behind Indian stock market crash?
V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the talks between Iran and the US in Pakistan, which ended without a deal, and Donald Trump declaring US naval blockade in the Strait of Hormuz, resulted in uncertainty and rise in crude prices.
Hong Kong’s Hang Seng index, Japan’s Nikkei 225 index, Shanghai’s SSE Composite index, and South Korea’s benchmark Kospi were quote lower.
“The failure of US–Iran negotiations over the weekend has heightened concerns of a prolonged conflict, further intensified by reports of a US naval blockade on Iranian ports,” Hariprasad K, Research Analyst and Founder, Livelong Wealth, told PTI.
FII and DII buying and selling activities
Foreign Institutional Investors (FIIs) turned buyers on Friday as they bought stocks worth Rs 672.09 crore, according to exchange data. In the previous trading session, FIIs were net buyers in the cash market to the extent of Rs 672.09 crore, while DIIs provided partial support by buying equities worth Rs 410.05 crore. In the index futures segment, FIIs also registered a net buy of Rs 3438.35 crore. Meanwhile, a -4.31% decline in open interest suggests short covering.
The US markets settled on a mixed note in the previous session (Friday), with the Dow Jones Fut. down by -0.83%, the S&P 500 Fut. down by -0.83%, and the Nasdaq Fut. down by -0.93%.
On Friday, the Sensex rallied 918.60 points to close at 77,550.25. The Nifty climbed 275.50 points or 1.16 per cent to end at 24,050.60. The Nifty opened on a positive note and witnessed slow but steady up-move as the index tested 24,074 zone in the last hour of trade. It formed a bullish candle on the daily scale as it traded the previous swing high of 24,025 and closed above the same. The index is holding above the 20 DEMA from past three trading session.
(Disclaimer: This article is only meant to provide information. News9 does not recommend buying or selling shares or subscriptions of any IPO)
