Stock Market News: Equity benchmark indices tumbled at the start of the session on July 23 after fresh attacks in the Red Sea pushed crude oil prices higher, raising concerns over global energy supplies.
The BSE Sensex fell as much as 410 points, or 0.53 per cent, to an intraday low of 76,344.67. The NSE Nifty 50 also slipped 120 points, or 0.50 per cent, to 23,876.20 in early trade.
The weakness came after Yemen's Iran-backed Houthi group claimed responsibility for targeting two Saudi oil tankers with drones and missiles. The group alleged that the ships had breached its blockade.
Earlier, the UK Maritime Trade Operations (UKMTO) reported that a vessel was hit by a projectile off Saudi Arabia's Red Sea coast near Al Shuqaiq, triggering a fire onboard. It did not name the ship involved.
These are the first reported attacks on oil tankers in the Red Sea. The incident has raised fears of disruptions to crude shipments through one of the world's busiest trade routes, pushing crude prices higher and weighing on investor sentiment across equity markets.
The broader markets also mirrored the weakness in benchmarks, with the Nifty Smallcap 100 and Nifty Midcap 100 trading in the red.
Selling was broad-based across sectors, with only Auto, Media and FMCG managing to stay in positive territory. Auto stocks continued their winning run, with the Nifty Auto index climbing about 1.35 per cent for a third straight session after strong earnings from a few companies lifted sentiment. Banking stocks, however, remained under pressure. The Nifty Bank index slipped 0.70 per cent to 56,724, making it the worst-performing sectoral index in early trade.
Among the Nifty 50 constituents, Eternal (formerly Zomato) gained over 3 per cent, followed by Bajaj Auto, Mahindra & Mahindra, and Eicher Motors, which gained between 1.50 per cent to 2.50 per cent. On the other hand, dragging the benchmark index were Dr Reddy's Laboratories, Nestle India, Adani Enterprises, Shriram Finance fell between 1 per cent and 2.50 per cent.
Brent Crude Oil Prices Jump Over $96 Per Barrel
Crude oil prices jumped after the tanker attacks in the Red Sea, fuelling concerns over potential supply disruptions and renewed inflationary pressures.
The international benchmark Brent crude oil futures jumped over 2.20 per cent to $96.13 a barrel, while the US West Texas Intermediate (WTI) crude oil futures surged nearly 1.50 per cent to $88.14 per dollar.
India, which depends on oil imports for meeting more than 85 per cent of its total oil demand,
