Key Takeaways:
- Sensex and Nifty extend losses as US-Iran tensions escalate
- FIIs offload Rs 2,408 crore, adding to record Rs 2.42 lakh crore outflow
- Metals rally 1.8% on aluminum surge; pharma, oil and gas lag
Back
Sensex, Nifty fall 5% since Iran war as outflows persist
India's Sensex and Nifty fell 5.1% and 6.6% since the Iran war began, as fresh US strikes in southern Iran revived supply disruption fears.
"Investor sentiment is likely to stay cautious as mixed signals from US-Iran talks and recent US strikes on Iran deepen risk aversion," Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, said.
The Sensex slipped 77.80 points to 75,935.11, while the Nifty declined 29.15 points to 23,897.80. Financial stocks fell 0.15%, weighed by a 2% drop in HDFC Bank. The metals index gained 1.8%, led by Hindalco and National Aluminium climbing 5% each as aluminum prices hit a four-year high. Coal India dropped 4% after the government announced a stake sale at a 10% discount, while ONGC fell 3% on modest quarterly growth.
Foreign investors have sold about Rs 2.42 lakh crore of Indian equities this year, exceeding the record annual outflow set in 2025. On Tuesday, FIIs offloaded Rs 2,407.87 crore after turning buyers for a single session. With the monthly derivatives expiry adding volatility and markets closed Thursday for Bakri Id, traders are watching the 23,700-23,750 support zone on the Nifty, according to Hitesh Tailor, Research Analyst at Choice Equity Broking.
The rupee slipped 8 paise to 95.78 against the dollar as elevated crude prices added pressure. Brent crude traded at $98 a barrel, down 1.56%, after earlier gains on supply concerns. Asian markets were mixed, with Hong Kong's Hang Seng falling 1.06% and Shanghai's SSE Composite lower, while Japan's Nikkei 225 rose 0.4%. Hong Kong's Hang Seng Tech Index dropped 0.79%, with southbound capital recording a net sell of 77 billion Hong Kong dollars.
"Markets are increasingly recognizing that the broader geopolitical backdrop remains fluid and vulnerable to sudden reversals," Ponmudi R, CEO of Enrich Money, said. FIIs have turned net sellers again, highlighting persistent risk aversion toward emerging markets, he added.
The broader Nifty Smallcap 100 and Midcap 100 indices gained 0.2% and 0.4%, respectively, showing resilience in domestic-focused names even as large-caps struggled. Pharma and oil and gas were the major sectoral laggards, while the broader market saw more winners than losers among mid- and small-cap names.
This article is for informational purposes only and does not constitute investment advice.
[1] Sensex down nearly 300 pts from day's high, Nifty near 23,850: US-Iran worries among key factors behind market decline[2] Stock markets trade lower amid volatile trends[3] NZX50, kiwi dollar gain as RBNZ holds cash rate in split decision[4] Crude oil down 3%; AutoZone shares fall after Q3 results
