The key equity benchmarks traded with major losses in the early afternoon, as the escalating war between Iran and the U.S.-Israel alliance reignited a surge in crude oil prices, weighing on global market sentiment.
The Nifty traded below the 22,500 level. Private Bank shares extended losses for two trading sessions.
At 11:30 ST, the barometer index, the S&P BSE Sensex plunged 1,214.53 points or 1.65% to 72,368.69. The Nifty 50 index tumbled 347.65 points or 1.52% to 22,471.95.
The broader market underperformed the frontline indices. The BSE 150 MidCap Index fell 2.07% and the BSE 250 SmallCap Index shed 2.28%.
The market breadth was weak. On the BSE, 855 shares rose and 3,258 shares fell. A total of 191 shares were unchanged.
The NSE's India VIX, a gauge of the market's expectation of volatility over the near term surged 6.32% to 28.50.
Buzzing Index:
The Nifty Private Bank index fell 2.64% to 24,326.55. The index declined 4.59% in the two consecutive trading session.
Bandhan Bank (down 4.06%), Axis Bank (down 3.94%), IndusInd Bank (down 3.85%), Yes Bank (down 3.7%) and Kotak Mahindra Bank (down 3.66%), IDFC First Bank (down 3.65%), Federal Bank (down 2.25%), ICICI Bank (down 1.52%), HDFC Bank (down 1.48%) and RBL Bank (down 1.08%) declined.
Stocks in Spotlight:
Thermax shed 0.12%. The company’s subsidiary, Thermax Babcock & Wilcox Energy Solutions (TBWES), secured an order worth approximately Rs 1,600 crore from Anuppur Powerprojects for a thermal power project.
Avantel fell 0.44%. The company has received a domestic contract from the India Meteorological Department (IMD) valued at Rs 137.12 crore. The contract involves manufacturing, warranty, and comprehensive operation and maintenance contract (COAMC) services. As per the agreement, Avantel will provide a three-year warranty followed by seven years of COAMC support.
G R Infraprojects added 1.41% after the company announced that it has secured a contract worth Rs 413.37 crore from NTPC for the implementation of a Battery Energy Storage System (BESS).
Global Markets:
Asia markets fell sharply on Monday as the Middle East war entered its fifth week, with the conflict escalating despite efforts aimed at finding a diplomatic solution.
In Japan, the Bank of Japan policymakers discussed the need for further rate hikes at their March meeting, as rising oil prices linked to the Middle East conflict add to inflation pressures. One member signaled that tightening may need to be accelerated, according to a summary of opinions released Monday.
There is a risk the BOJ might unintentionally fall behind the curve, one policymaker noted, as second-round effects and a rise in underlying inflation stemming from overseas developments are more likely to emerge.
Meanwhile, Yemen’s Houthi movement said Saturday it had fired missiles at Israel, marking its first direct involvement in the U.S.- and Israeli-led war against Iran.
In a post on a social media platform, Houthi spokesperson Yahya Saree has reportedly said the group launched a barrage of ballistic missiles at what it described as sensitive Israeli military sites, in support of Iran and allied Hezbollah forces in Lebanon.
The strike signals a further escalation in a conflict that began with U.S. and Israeli airstrikes on Iranian targets on Feb. 28.
Last Friday, the Dow Jones Industrial Average tumbled and fell into correction territory. The 30-stock Dow fell 793.47 points, or 1.73%, to close at 45,166.64. The S&P 500 lost 1.67% and ended the session at a seven-month low of 6,368.85. The Nasdaq Composite dropped 2.15% and settled at 20,948.36.