Markets Extend Losses; Sensex Falls 250 Points, Nifty Breaks 12,200

The markets have extended their losses due to heightened geo-political tensions. At 3.10pm, the Sensex was at 41,454.78, lower by 171.86 points and the Nifty was down 54 points at 12,230. The Sensex was down around 250 points at its intra-day low of 41,348 and the Nifty had briefly broken the technically crucial level of 12, 200 to touch an intra-day low of 12,191.

The European indices, including CAC, DAX and FTSE, shed more than 1 per cent in early trades and Asian shares slipped after US air strikes killed a top Iranian commander, intensifying geopolitical tensions in the Middle East. The air strikes killed the head of Iran's elite Quds Force and a top Iraqi militia leader at the Baghdad airport on Friday.

Brent crude futures jumped to their highest since September 17 and were last up 2.88 per cent at $68.16 a barrel. MCX Crude oil index has soared by 4.7 per cent at 4,547. The oil price surge reflects concerns that escalating Middle East tensions may disrupt oil supplies. The rupee weakened by 0.26 per cent to 71.5525 against the dollar.

SBI, M&M and HDFC were among the major largecap losers on the BSE, weakening 1.5 per cent to 2.2 per cent respectively.

Airlines shares were, however, trading mixed after the surge in oil prices. InterGlobe Aviation, which was down more than 2 per cent in early trades, has bounced back into the green and is now trading at Rs 1,361, up 2.1 per cent. On the other hand, SpiceJet shed 6.3 per cent.

Tech stocks have bucked the weak trend due to the strength in the dollar as they receive a bulk of their revenues in dollar terms. HCL Tech, Infosys, TCS and Tech Mahindra have gained in the region of 1 per cent and 2 per cent each.

On Thursday, the S&P BSE Sensex had ended 320.62 points - or 0.78 per cent - higher at 41,626.64 and the broader NSE Nifty benchmark settled at a record 12,282.20, up 99.70 points - or 0.82 per cent - from the previous close.

The market breadth marginally favoured the declines, with 1256 declining stocks as against 1217 advances on the BSE.