Equity benchmark indices opened sharply lower on July 13, tracking the sell-off across Asian markets, as investors turned cautious after fresh military tensions between the US and Iran triggered a surge in crude oil prices. Rising oil prices raised concerns over global energy supplies, making investors cautious and prompting them to reduce exposure to riskier assets.
The BSE Sensex opened 606.04 points, or 0.78 per cent, lower at 76,963.35. Likewise, the NSE Nifty 50 started 167.50 points, or 0.69 per cent, lower at 24,039.40.
Broader market also mirrored the negative sentiment, with the Nifty Midcap 100 and the Nifty Smallcap 100 falling more than 0.55 per cent and 0.63 per cent at open. The Nifty 500 index, which represents more than 92 per cent of the free float market capitalisation of all the NSE-listed companies, also fell 0.66 per cent.
Barring Nifty IT and Nifty Media, all other sectoral indices were trading in the red.
Within the Nifty 50, gains in IT major Tata Consultancy Services (TCS), state-run oil and gas producer ONGC, power utility NTPC, power transmission company Power Grid, IT services firm HCL Technologies, state-owned coal miner Coal India, and hospital chain Apollo Hospitals helped limit the benchmark's losses.
On the other hand, the index was dragged down by airline operator InterGlobe Aviation, steelmaker Tata Steel, automaker Maruti Suzuki, private sector lender HDFC Bank, paints maker Asian Paints, life insurer SBI Life Insurance, defence electronics manufacturer Bharat Electronics, financial services firm Bajaj Finserv, commercial vehicle maker Eicher Motors, engineering and infrastructure major Larsen & Toubro, and cement manufacturer UltraTech Cement.
US-Iran War Update
Iran’s Islamic Revolutionary Guard Corps (IRGC) said it launched fresh missile and drone attacks on US-linked military facilities in Kuwait, Bahrain and Jordan in retaliation for recent US strikes on Iranian military sites. The IRGC claimed it hit fuel depots, Patriot air defence systems and radar installations, warning that further US military action in the Strait of Hormuz would invite more retaliation.
Meanwhile, the US Central Command (CENTCOM) said its latest strikes targeted Iran’s air defence systems, radar networks, missile and drone capabilities, and naval assets to reduce Tehran’s ability to threaten shipping through the Strait of Hormuz. CENTCOM also accused the IRGC of firing on commercial vessels in the waterway, adding that US forces intercepted an Iranian cruise missile and a one-way attack drone. The US military said it would continue operations to ensure freedom of navigation in the strategic shipping lane.
