Stock markets slump on West Asia tensions, weak cues

Indian equity benchmarks BSE Sensex and NSE Nifty 50 fell sharply in Thursday’s afternoon session, reversing gains from the previous rally amid rising geopolitical tensions in West Asia.

The Sensex declined 938.55 points, or 1.21 per cent, to touch an intra-day low of 76,624.35, while the Nifty dropped 237.9 points, or 0.99 per cent, to 23,759.45.

Investor sentiment turned cautious after fresh tensions threatened the ceasefire between the United States and Iran, sparking concerns across global financial markets. The uncertainty prompted profit booking following the strong upswing seen in the previous trading session.

Weak trends across Asian markets further weighed on domestic equities, reflecting broader risk aversion among global investors. Continued foreign institutional investor (FII) outflows also added to the selling pressure.

Market participants remained wary as geopolitical developments and global cues dictated the day’s trend, with broad-based declines seen across sectors.

Analysts expect volatility to persist in the near term, as investors closely monitor developments in West Asia along with foreign fund movements and global market signals.