Mumbai, May 5: Benchmark indices Sensex and Nifty buckled under selling pressure on Tuesday as fresh tensions flared in the Strait of Hormuz region and the ceasefire between the US and Iran came under strain.
The rupee hitting a record low against the US dollar amid elevated crude prices also made investors cautious.
In a volatile session, the 30-share BSE Sensex dropped 251.61 points, or 0.33 per cent, to settle at 77,017.79. During the day, it tanked 754.37 points, or 0.97 per cent, to 76,515.03.
The 50-share NSE Nifty edged lower by 86.50 points, or 0.36 per cent, to end at 24,032.80.
“Domestic equities witnessed a volatile session, closing lower as post-election optimism faded and sentiment re-aligned with global weakness amid rising geopolitical tensions.
“Elevated crude prices continued to pressure the rupee, which slipped to record lows. Despite these headwinds, the ongoing earnings season, with results slightly ahead of expectations, provided some support and triggered selective bottom-fishing,” Vinod Nair, Head of Research, Geojit Investments Limited, said.
From the Sensex firms, ICICI Bank, Eternal, Tech Mahindra, Axis Bank, Bharti Airtel and Larsen & Toubro were among the major laggards.
On the other hand, Mahindra & Mahindra, UltraTech Cement, Bajaj Finserv and Bajaj Finance were top gainers.
In the broader market, the BSE MidCap Select index dipped 0.12 per cent, while the SmallCap Select index went up marginally by 0.14 per cent.
Sectorally, Realty dropped 1.38 per cent, Top 10 Banks (0.79 per cent), Services (0.63 per cent), Consumer Durables (0.62 per cent), Private Banks (0.60 per cent) and Bankex (0.58 per cent).
In contrast, Power, FMCG, Commodities, Healthcare, IT, Telecommunication, Utilities, Auto, Capital Goods, Focused IT and MidSmall Private Banks Quality Tilt were the gainers.
Drone strikes caused a fire at a major oil industry zone in the United Arab Emirates’ port city of Fujairah on Monday. The UAE had accused Iran of carrying out the strike.
Brent crude, the global oil benchmark, traded around the USD 113 per barrel mark.
Foreign Institutional Investors (FIIs) turned buyers on Monday, buying equities worth Rs 2,835.62 crore, according to exchange data. (PTI)
