Stock markets tumble in early trade amid fresh tensions in West Asia

New Delhi: Stock market benchmark indices Sensex and Nifty tumbled in early trade on Thursday after an impressive rally in the previous session amid fresh tensions in West Asia, igniting concerns over a potential ceasefire breach.

The 30-share BSE Sensex dropped 243.57 points to 77,319.33 in opening trade. The 50-share NSE Nifty declined 88.3 points to 23,909.05.

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Later, the BSE benchmark quoted 728.93 points lower at 76,833.97, and the Nifty tumbled 189.55 points to 23,821.45.

From the 30-Sensex firms, Infosys, Adani Ports, InterGlobe Aviation, HDFC Bank, Bajaj Finance and ICICI Bank were among the major laggards.

NTPC, Bharat Electronics, Tata Steel and Power Grid were among the gainers.

Brent crude, the global oil benchmark, jumped 2.09 percent to USD 96.73 per barrel.

In Asian markets, South Korea's benchmark Kospi, Japan's Nikkei 225 index, Shanghai's SSE Composite index and Hong Kong's Hang Seng index were trading lower after a sharp rally in the previous trade.

"With fair valuations in the market now, if the West Asian ceasefire holds, the market will remain resilient. But there are some concerns surrounding Israeli attack on Lebanon and its fallout on the ceasefire," VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said.

US markets ended significantly higher on Wednesday. The Dow Jones Industrial Average jumped 2.85 percent, Nasdaq Composite surged 2.80 percent and S&P 500 climbed 2.51 percent.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,811.97 crore on Wednesday, according to exchange data. Domestic Institutional Investors (DIIs), however, bought stocks worth Rs 4,168.17 crore.

Concerns have resurfaced after Iran signalled potential ceasefire breaches amid continued Israeli strikes in Lebanon, limiting follow-through optimism and keeping global risk sentiment in check, Hariprasad K, Research Analyst and Founder, Livelong Wealth, said.

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On Wednesday, the Sensex jumped 2,946.32 points or 3.95 percent to settle at 77,562.90. The Nifty soared 873.70 points or 3.78 percent to end at 23,997.35.

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