Investors lost about Rs 1.27 lakh crore in market value on Tuesday as benchmark equity indices declined amid concerns over renewed tensions between the United States and Iran.
The NSE Nifty 50 fell as much as 0.86% to 24,189.20, while the BSE Sensex dropped as much as 682 points, or 0.87%, to 77,498.70.
Banking stocks weighed the most on the benchmarks, according to exchange data. Reliance Industries Ltd., ICICI Bank, Bharti Airtel, HDFC Bank and Axis Bank were the largest drags on the Nifty 50 during the session. Reliance Industries alone shaved 30.68 points off the index, followed by ICICI Bank at 28.48 points and Bharti Airtel at 18.16 points.
Banking, Oil & Gas Lead Sectoral Decline
Sectoral indices largely traded in the red. The Nifty Oil & Gas index declined 1.57%, making it the worst-performing sector. Nifty FMCG fell 1.33%, while Nifty Media lost 1.29%.
Nifty Financial Services dropped 0.92%, followed by Nifty Rural at 0.88%, Nifty Bank at 0.78%, Nifty Consumption at 0.75%, Nifty PSU Bank at 0.74% and Nifty Auto at 0.58%.
Nifty IT slipped 0.52%, Nifty Energy declined 0.47% and Nifty India Defence fell 0.07%. Nifty Metal, Nifty Pharma and Nifty Realty were the only sectoral indices trading in positive territory, rising 0.03%, 0.07% and 0.59%, respectively.
US-Iran Developments Weigh On Markets
Markets came under pressure after fresh geopolitical developments involving the United States and Iran.
The US Central Command said its forces launched strikes against Iran after Tehran attacked three commercial vessels transiting the Strait of Hormuz.
"The operation aimed to impose costs for attacks on civilian shipping," the US Central Command said, adding that Iran's actions violated the ceasefire.
Separately, the US Treasury's Office of Foreign Assets Control revoked a licence that had permitted certain transactions involving Iranian crude oil. The agency replaced the June 21 waiver with a new authorisation requiring previously permitted activities to be wound down. The revised licence took effect on July 7.
Iran criticised the move. "The US decision breached the Islamabad Memorandum of Understanding," Deputy Foreign Minister Kazem Gharibabadi said. He also accused Washington of violating the agreement through military operations and said Tehran would respond to protect its national interests and security.
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