Mumbai, April 9 – The benchmark indices Sensex and Nifty plunged on Thursday afternoon trading after a strong rally in the previous session, as fresh tensions in West Asia threatened the ceasefire reached between the US and Iran.
Weak trends in Asian markets and continued outflows of foreign funds also contributed to the market decline.
The 30-share BSE Sensex fell by 938.55 points or 1.21%, hitting a day's low of 76,624.35. The 50-share NSE Nifty declined by 237.9 points or 0.99%, closing at 23,759.45.
Among the 30 companies in the Sensex, Larsen & Toubro, InterGlobe Aviation, HDFC Bank, Infosys, ICICI Bank, and Eternal were among the major laggards.
NTPC, Bharat Electronics, Tata Consultancy Services, and Power Grid were among the gainers.
Brent crude, the global oil benchmark, jumped by 2.15% to USD 96.79 per barrel.
In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index declined after a sharp rally in the previous trading session.
US markets ended significantly higher on Wednesday. The Dow Jones Industrial Average jumped by 2.85%, Nasdaq Composite surged by 2.80%, and S&P 500 climbed by 2.51%.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,811.97 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 4,168.17 crore.
Concerns have resurfaced after Iran signaled potential ceasefire breaches amid continued Israeli strikes in Lebanon, limiting optimism and keeping global risk sentiment in check, said Hariprasad K, Research Analyst and Founder, Livelong Wealth.
On Wednesday, the Sensex jumped by 2,946.32 points or 3.95%, closing at 77,562.90. The Nifty soared by 873.70 points or 3.78%, ending at 23,997.35.