Sensex falls 208 points as oil prices and FII outflows weigh on markets

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While the global uncertainties are looking to ease, the volatility across the markets remains high. The stock market benchmark indices Sensex and Nifty, after opening in green the previous day, drifted lower on Tuesday as surging oil prices and foreign fund outflows unnerved investors.

Sensex falls by 208 points

The 30-share BSE Sensex declined 208.84 points to 77,094.79 in opening trade. Whereas the 50-share NSE Nifty dipped 42.8 points to 24,049.90. From the 30-Sensex firms, State Bank of India, Eternal, UltraTech Cement, InterGlobe Aviation, Trent and Axis Bank were among the biggest laggards. On the other hand, Tata Steel, Bajaj Finance, Kotak Mahindra Bank and Bharat Electronics were among the gainers.

On the sectoral front, a mixed trend was observed in early trade on the NSE. Pharma and PSU bank stocks remained under pressure, while select sectors showed resilience. Nifty FMCG edged up by 0.11 per cent, Nifty IT gained 0.24 per cent, Nifty Media rose 0.38 per cent, and Nifty Metal advanced 0.27 per cent.

Global markets

In Asian markets, Japan's Nikkei 225 index, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index were quoted lower, while South Korea's benchmark Kospi traded higher. Amid the uncertainties, the US markets also ended flat on Monday.

FIIs offload equities worth Rs 1,151 crore

Amid the uncertainties, Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,151.48 crore on Monday, according to exchange data, as per PTI.

Expert opinions

Expressing his views amid the highly volatile market situation, Ponmudi R, CEO of Enrich Money, said, "Elevated crude oil prices continue to be a key concern, with Brent trading in the USD 106.110 per barrel range, adding to inflationary pressures and weighing on sentiment. On the domestic front, foreign investor flows remain under pressure, reflecting global risk aversion, while domestic institutional investors continue to provide some support," as cited by PTI.

Hariprasad K, Research Analyst and Founder, Livelong Wealth, said, "Global markets present a mixed but cautiously constructive picture. The S&P 500 and Nasdaq Composite have scaled fresh record highs, reflecting underlying resilience in US equities. However, the upside momentum remains constrained by unresolved geopolitical tensions, particularly around the Strait of Hormuz, where fresh developments continue to influence crude oil prices and global risk sentiment."

(With inputs from PTI)