New Delhi: Escalation in tensions in the Middle East following the US airstike in Baghdad and Iranian General Qassem Soleimani's death have upset the Indian markets adversely in the past two days. Investor wealth tumbled by a whopping Rs 3.36 lakh crore in two successive sessions of decline in the equity market.
Equity markets fell for second consecutive session, with the 30-share key BSE index plummeting 787.98 points, or 1.90 per cent, to close at 40,676.63, on Monday. During the trade, it dropped 850.65 points to 40,613.96.
The Sensex had ended 162.03 points, or 0.39 per cent, lower at 41,464.61 on Friday as well.
Led by the weakness in equities in two consecutive trading sessions, the market capitalisation of BSE-listed companies plunged by Rs 3,36,559.82 crore to Rs 1,53,90,312.60 crore.
Brent crude oil futures surged nearly 2 per cent to $69.81 on Monday, while the rupee depreciated 24 paise against the US dollar to 72.04 (intra-day).
On the Sensex chart, Bajaj Finance was the top loser, dropping 4.63 per cent, followed by SBI, IndusInd Bank, Maruti and HDFC.
At the BSE, 1,944 stocks declined, while 604 advanced and 181 remained unchanged.
The S&P BSE Smallcap index closed 1.96 per cent lower, while the BSE Midcap index fell 2.31 per cent.
US President Donald Trump on Sunday vowed "major retaliation" if Iran tries to avenge the killing of its key military commander Qasem Soleimani.
Oil marketing companies' shares drop
Oil marketing stocks led by Hindustan Petroleum Corporation on Monday plunged up to 7.2 per cent amid surge in crude oil prices.
HPCL shares dropped 7.24 per cent to close at Rs 244.70 on the BSE.
Bharat Petroleum Corporation dipped 2.73 per cent and Indian Oil Corporation fell 1.50 per cent.
Brent crude oil futures surged nearly 2 per cent to $69.81.
The 30-share BSE index ended at 40,676.63, dropping 787.98 points, or 1.90 per cent as heightened tensions in the Middle East kept investors on edge.
"Indian market is reacting more negatively than other emerging markets due to crude oil impact. Since our dependence on crude imports as a percentage of consumption is the highest, the impact on economy and markets is also higher," said Rusmik Oza, Senior VP (Head of Fundamental Research-PCG), Kotak Securities.
Gold prices peak
Gold prices were near a seven-year high on Monday as escalating tensions between United Stated and Iran attracted safe haven demand, while palladium rose past a key $2,000 level to hit a new record peak.
Spot gold rose 1.6% to $1,576.42 per ounce by 1039 GMT, putting it on course for its biggest one-day jump in more than four months. Earlier in the session it hit $1,579.72, its highest since April 2013.
(With inputs from PTI and Reuters.)
