Markets tank 1% from historic high, investors lose ₹2.54 trillion on NSE
₹2.54 trillion on the NSE. While some experts said investors were spooked by concerns over escalation of the Middle East crisis, a delay in rate cuts by the US, and an amendment to the India-Mauritius tax treaty, others pooh-poohed these concerns and said the correction was expected and healthy. The sectors that saw the highest profit booking were banking, IT, infra, oil and gas, and pharma.
The Sensex corrected by 1.06% to 74,244.90 while the Nifty fell by 1.03% to 22,519.4 as FPIs sold shares worth a provisional ₹8,027 crore. The fall would have been sharper had domestic institutional investors (DIIs) not net-purchased shares worth a provisional ₹6,341.53 crore. In comparison, broader markets led by the Nifty Smallcap 250 and the Nifty Midcap 150 indices outperformed, correcting by two-fifths to half a per cent.
HDFC Bank (-1.13%), L&T (-1.97%), Reliance Industries (-0.84%), Sun Pharma (-3.99%) and ITC (-1.57%) alone contributed to over two-fifths of Nifty’s 234.40-point fall. “It seems that geopolitical tensions in the Middle East are having a significant impact on the global economy," said Shrikant Chouhan, head-equity research, Kotak Securities. “The surge in oil prices due to escalating tensions and Iran’s vow to retaliate against a suspected Israeli airstrike is a major concern for potential disruptions to oil supply from the region." Brent crude oil active futures’ contract on Atlanta-based InterContinental Exchange was up 1.09% at $90.71 at the time of writing as fears of a reprisal by Iran on Israel rose following a strike by the latter on the Iranian consulate in Damascus on 1 April that killed seven Iranian revolutionary guards.
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