Stock markets trade lower in afternoon session dragged by surging crude oil prices

The 30-share BSE Sensex tanked 992.53 points. The 50-share NSE Nifty dived 310.55 points

Mumbai: Benchmark indices Sensex and Nifty were trading lower during afternoon session on Thursday amid boiling crude oil prices due to the worsening crisis in West Asia.

Besides, weak global market trends and unabated foreign fund outflows also rattled investors' sentiment, analysts said.

The 30-share BSE Sensex tanked 992.53 points or 1.29 per cent to 75,871.18 in early trade. The 50-share NSE Nifty dived 310.55 points or 1.30 per cent to 23,556.30.

Later, the BSE benchmark index quoted 432.04 points or 0.56 per cent lower at 76,459.62. The Nifty traded with a cut of 129.70 points or 0.50 per cent at 23,745.55.

From the 30-Sensex firms, Mahindra & Mahindra, Maruti, Trent, UltraTech Cement, InterGlobe Aviation and Bajaj Finance were among the biggest laggards.

NTPC, Power Grid, Reliance Industries and Tech Mahindra were among the winners.

Brent crude, the global oil benchmark, jumped 8.98 per cent to $100.24 per barrel.

"Indian equity markets opened with a sharp gap-down, reflecting heightened global uncertainty and rising risk aversion among investors.

"The immediate trigger behind the decline is the sharp surge in crude oil prices, with Brent crude approaching the $100 per barrel mark following escalating geopolitical tensions involving the US, Israel, and Iran in West Asia," Ponmudi R, CEO of Enrich Money, said.

Several Asian markets, including Japan’s Nikkei and South Korea’s Kospi, traded sharply lower as investors shifted toward a risk-off stance amid geopolitical uncertainty, he noted.

"Another key factor weighing on sentiment is the persistent selling by FIIs," Ponmudi added.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading lower.

The US market ended mostly lower on Wednesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 6,267.31 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DII) bought stocks worth Rs 4,965.53 crore.

On Wednesday, the Sensex tumbled 1,342.27 points or 1.72 per cent to settle at 76,863.71. The Nifty tanked 394.75 points or 1.63 per cent to end at 23,866.85.