Mumbai

Equitybenchmark indices ended lower on Thursday, with the Sensex tumbling 931 points after a spectacular rally in the previous session, as renewed tensions in West Asia faded the ceasefire-led optimism. The ceasefire deal appeared to be at risk after Iran closed the Strait of Hormuz again in response to Israeli attacks on Lebanon.

Weak trends in Asian and European markets, a jump in crude oil prices and uninterrupted foreign fund outflows also made investors jittery in the domestic market. The 30-share BSE Sensex dropped 931.25 points or 1.20 per cent to settle at 76,631.65. During the day, it dived 1,215 points or 1.56 per cent to 76,347.90. The 50-share NSE Nifty declined 222.25 points or 0.93 per cent to end at 23,775.10. From the 30-Sensex firms, InterGlobe Aviation, Larsen & Toubro, Eternal, HDFC Bank, ICICI Bank and Kotak Mahindra Bank were among the major laggards. Bharat Electronics, Power Grid, NTPC and Tata Consultancy Services were among the gainers. Brent crude, the global oil benchmark, jumped 3.27 per cent to $97.85 per barrel.

"Ceasefire-led optimism faded as renewed US-Iran tensions and ongoing restrictions at the Strait of Hormuz pushed crude back up, reviving concerns around India's inflation. Domestically, profit-booking, rising 10-year bond yields, and rupee weakness reduced near-term risk appetite. Financials led the decline after the previous session's sharp rally amid sustained FII selling, while broader markets held relatively steady," Vinod Nair, Head of Research, Geojit Investments Limited, said. Foreign Institutional Investors (FIIs) offloaded equities worth Rs2,811.97 crore on Wednesday, according to exchange data.

Domestic Institutional Investors (DIIs), however, bought stocks worth Rs4,168.17 crore. US markets ended significantly higher on Wednesday. "Indian markets witnessed a pullback, snapping the recent five-session gaining streak as sentiment turned cautious amid fading confidence around the US-Iran ceasefire.