Sensex falls over 800 points, Nifty ends lower amid West Asia tensions

Indian stock markets ended lower on Thursday as escalating tensions in West Asia and a sharp rise in crude oil prices weighed on investor sentiment.

The BSE Sensex closed at 76,034.42, down 829.29 points or 1.08 per cent, while the Nifty 50 settled at 23,639.15, declining 227.70 points or 0.95 per cent.

Market sentiment remained under pressure following reports that Iran’s Navy Chief warned vessels passing through the Strait of Hormuz may require Iranian approval or risk being targeted, raising concerns over potential disruptions to global energy supplies.

VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said external factors have pushed the markets into a weak phase.

“External headwinds have pushed the market into a weak zone. With the war continuing and Brent crude prices again moving higher, the weakness may persist. Even though domestic institutional investors are buying, sustained selling by foreign institutional investors is preventing the market from recovering,” he said.

He added that while markets may remain volatile during geopolitical conflicts, historical trends show that they tend to recover once tensions ease. According to him, long-term investors can gradually accumulate quality stocks during periods of market weakness.

Ponmudi R, CEO of Enrich Money, said Indian equity markets traded cautiously during the session but eventually closed with a bearish bias.

“Investor sentiment remained fragile, largely influenced by rising geopolitical tensions in the Middle East and concerns over maritime security after attacks on Gulf shipping near the Strait of Hormuz. These developments pushed crude oil prices higher and increased global risk aversion,” he said.

Vinod Nair, Head of Research at Geojit Investments Limited, said global risk appetite has weakened as attacks on oil-shipping vessels have pushed crude prices closer to 100 dollars per barrel, intensifying concerns over inflation and supply constraints.

He noted that although the market is witnessing broad-based consolidation, selective buying has emerged in sectors such as renewables and utilities.

-ANI