Auto Banking Stocks Drag Sensex Down on Iran Tensions
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Fresh escalation in US-Iran relations cast a long shadow over Dalal Street, as India’s key stock indices kicked off Friday with significant losses. The Sensex slid 0.27% or 212.58 points to 77,631.94, mirroring the Nifty’s 0.38% or 93-point retreat to 24,233.65.
Auto and banking sectors bore the brunt, spearheading a widespread sell-off. Indices such as Nifty Auto, Private Bank, Financial Services, Oil & Gas, Services, PSU Bank, Consumption, PSE, and Commodities turned red early on. Pockets of strength appeared in Nifty Defence, Pharma, and IT.
Mid and smallcaps displayed resilience in parts. Nifty Midcap 100 eased 76 points (0.12%) to 61,926.35, whereas Nifty Smallcap 100 nudged up 8 points to 18,701.
Sensex heavyweights showed divergence: Tech Mahindra, Asian Paints, Infosys, HCL Tech, Adani Ports, Titan, Bharti Airtel, Sun Pharma, Indigo, and TCS posted advances. Decliners included Axis Bank, M&M, HDFC Bank, Eternal, Bajaj Finance, Maruti Suzuki, UltraTech Cement, NTPC, and Tata Steel.
Global markets shared the pain, with major Asian bourses like Tokyo, Shanghai, Hong Kong, Jakarta, and Seoul opening lower. Bangkok defied the trend positively. U.S. indices closed down Thursday—Dow by 0.63%, Nasdaq by 0.13%.
The crude oil factor looms large, with prices swinging wildly due to Middle East unrest. ‘This is a bifurcated market landscape,’ says a strategist. ‘Geopolitics hurts some, but AI-driven markets like South Korea (71% YTD) and Taiwan (40% YTD) are outliers.’
Traders are on high alert for policy signals and oil updates. Long-term investors might find value in dips, but short-term volatility demands vigilance.
