Indian Stocks Fall Amid Iran Sanctions & Elevated Crude Oil

Mumbai, Aug 24 (PTI) Benchmark equity indices Sensex and Nifty ended lower on Monday as persistent geopolitical tensions and elevated crude oil prices hampered risk appetite.

Investors remained cautious ahead of fresh US sanctions on Iran, experts said.

Despite a positive beginning, the 30-share BSE Sensex failed to carry forward the momentum and declined 171.72 points, or 0.22 per cent, to settle at 77,369.11. During the day, it dropped 339.17 points, or 0.43 per cent, to 77,201.66.

The 50-share NSE Nifty slipped 32.95 points, or 0.14 per cent, to end at 24,219.05.

Among the 30 Sensex firms, Adani Ports, Bharat Electronics, Bajaj Finance, Bajaj Finserv, Trent, Axis Bank, State Bank of India, and Tata Consultancy Services were among the laggards.

Tata Steel, HCL Tech, Infosys, and Hindustan Unilever were among the major winners.


Brent crude, the global oil benchmark, dropped 1.68 per cent to USD 92.80 per barrel.

"Indian equity markets ended lower on Monday, tracking weakness across Asian markets as renewed concerns over the Middle East and selling in banking and financial stocks weighed on investor sentiment. Markets remained cautious ahead of fresh US sanctions, with Washington promising an 'economic D-Day' against Iran and its trading partners, while Tehran threatened to halt Gulf oil exports in response, keeping investors wary of further escalation," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite index, and Hong Kong's Hang Seng index ended lower. The Kospi was down 3.12 per cent.

"Caution dominated market sentiment as investors are awaiting fresh sanctions from the US on Iran later today. Brent crude eased on profit-taking but remained above the USD 90/bbl mark, supported by concerns over tighter Iranian oil supplies and ongoing tensions around the Strait of Hormuz," Vinod Nair, Head of Research, Geojit Investments Ltd, said.

Markets in Europe were trading on a mixed note. US markets ended higher on Friday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 542.71 crore on Friday, according to exchange data.

On Friday, the Sensex ended almost unchanged from the previous close at 77,540.83, up 3.11 points. The Nifty also ended flat, up 20.15 points, or 0.08 per cent, at 24,252.