Stock Market Snaps 2-Day Run: Sensex Tanks 483 Points; Nifty Nears 19,500 On Israel-Hamas Conflict

Stock update: On the 30-share Sensex platform, M&M, Bajaj Finance, Tata Steel, SBI, Kotak Bank, Titan were among the main losers. On the flip side, only HCL, TCS, and HUL emerged gainers

The two key equity benchmarks, Sensex and Nifty, on Monday erased all gains from the previous session and also snapped a two-day winning run as conflict between Israel and Hamas soured sentiment. Crude oil prices soared by up to 8 per cent in two days, stoking fears of elevated inflation across the globe. The S&P BSE Sensex plunged 483 points to close at 65,512. On the other hand, NSE Nifty50 settled at 19,512, down 141 points.

On the 30-share Sensex platform, M&M, Bajaj Finance, Tata Steel, SBI, Kotak Bank, Titan were among the main losers. On the flip side, only HCL, TCS, and HUL emerged gainers.

In the broader markets, the BSE Midcap and Smallcap indices shed 1.2 per cent and 1.7 per cent, respectively.

Volatility gauge, India VIX, zoomed 12 per cent today.

Sectorwise, all the indices settled lower led by the Nifty PSU Bank index (down over 3 per cent), followed by the Nifty Media index (2.4 per cent).

In the previous session on Friday, the S&P BSE Sensex jumped 364 points to end at 65,996, while the NSE Nifty50 closed at 19,654, up 108 points.

"European and Asian stocks came under pressure on Monday in a global risk-off move following the eruption of a growing conflict between Israel and the Palestinian Islamist group Hamas. This pushed investors toward safe-haven assets as this negative trigger is the latest in the list, including the macro-economic uncertainties in Europe and China, hawkish central banks and already rising oil prices," Deepak Jasani, Head of Retail Research, HDFC Securities, said.

Elsewhere in Asian markets, Hang Seng was trading 0.19 per cent higher. Shanghai Composite Index was down 0.41 per cent, while Taiwan T SEC 50 Index was up 0.28 per cent. The Japanese stock markets were closed on Monday. European markets were trading on a mixed note. Germany's DAX declined 0.50 per cent, and France's CAC 40 was down 0.27 per cent. London's FTSE 100 was trading 0.26 per cent higher.

Global oil benchmark Brent crude rose sharply by 3.32 per cent to $87.39 a barrel on Monday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 90.29 crore on Friday, according to exchange data.

Meanwhile, the rupee settled flat at 83.27 against the US dollar amid a weak trend in domestic equities and surging crude oil prices in the international markets. Forex traders said the safe-haven dollar gained ground amidst heightened concerns in the Middle East.

At the interbank foreign exchange, the domestic unit opened at 83.24 and finally settled at 83.27 against the American currency. During the day, the rupee witnessed an intra-day high of 83.21 and a low of 83.28 against the greenback. On Friday, the rupee declined 2 paise to settle at 83.27 against the US dollar.