Sensex sinks 550 points to slip below 66k on spike in crude oil prices, weak global trend

After a day’s breather, the 30-share BSE Sensex plunged 551.07 points

Equity benchmark index Sensex tumbled 551 points to close below the 66,000 level on Wednesday due to profit-taking in banking, financial and energy stocks amid a sharp jump in global crude oil prices.

A sluggish trend in global equity markets following lingering geopolitical worries also sapped the risk appetite of investors, traders said.

After a day’s breather, the 30-share BSE Sensex plunged 551.07 points or 0.83% to settle at 65,877.02. During the day, it fell 585.99 points or 0.88% to 65,842.10.

The Nifty declined 140.40 points or 0.71% to 19,671.10.

“Profit booking ensued in Indian markets, spurred by weak global sentiments and escalating Middle East tensions. A sudden rise in the tension has led to instability in energy prices; Brent prices rapidly rose above $92.5 by the day’s closing time.

“The initial Q2 earnings disappointments by the IT and financials sector may have prompted attention in the domestic markets. All these factors are presumed to be a knee-jerk reaction as the total outlook on the domestic market is stable, underpinned by healthy Q2 result forecast and favourable fiscal position,” Vinod Nair, Head of Research at Geojit Financial Services, said.

Among the Sensex firms, Bajaj Finance fell by nearly 3%, the most among the 30 frontline companies. Bajaj Finserv, Axis Bank, HDFC Bank, Reliance Industries, NTPC, ICICI Bank and IndusInd Bank were the other major laggards.