Sensex and Nifty tumble in early trade
Benchmark equity indices tumbled in early trade on Monday (October 9) as escalating tensions in the Middle East triggered a risk-off in the market.
Market analysts said investors preferred to remain on the sidelines and refrained from taking big risks as the Israel-Hamas conflict has introduced a huge uncertainty for the markets.
The 30-share BSE Sensex plunged 407.19 points or 0.62 per cent to 65,588.44 points in early trade. The Nifty declined 142.70 points or 0.72 per cent to 19,510.80 points.
State Bank of India, Tata Steel, Titan, IndusInd Bank, and Asian Paints were among the major laggards.
On the other hand, HCL Technologies, Tech Mahindra, TCS, Wipro, Infosys, Hindustan Unilever, and Sun Pharma defied the broader market trend and were trading in the positive territory.
"The Israel-Hamas conflict has introduced a huge uncertainty for the markets. Nobody knows how this war is going to evolve," V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
He said that even though it is unlikely to cause major disruption in oil supplies at present, the situation will change if Iran, a major Hamas supporter, is drawn into the war.
"That can disrupt oil supplies causing a spike in crude, which can trigger a risk-off in the market. This is a time to be cautious," he added.
Traders are also expected to remain cautious ahead of macroeconomic data to be announced later this week.
Asian markets are trading lower on Monday (October 9) as Chinese and Hong Kong shares fell.
Meanwhile, global oil benchmark Brent crude witnessed a sharp rise of 3.68 per cent to USD 87.69 a barrel on Monday (October 9).
