Sensex tanks over 350 points on US-Iran conflict; Nifty below 12,000

Mumbai: Equity benchmark BSE Sensex slumped over 350 points in opening session on Wednesday as tensions in the middle-east escalated after Iran fired missiles at US military bases in Iraq.

After hitting a low of 40,476.55, the 30-share BSE index pared some losses to trade 193.98 points or 0.47 per cent lower at 40,675.49. Similarly, the broader NSE Nifty dropped 59.60 points or 0.49 per cent to 11,993.35.

L&T Bank was the loser in the Sensex pack, shedding up to 1.47 per cent, followed by Kotak Bank, HDFC Bank, SBI, Axis Bank, NTPC and Titan.

On the other hand, TCS, Tech Mahindra, UltraTech Cement, Bajaj Auto and Reliance Industries were trading in the green.

In the previous session, the BSE barometer ended 192.84 points or 0.47 per cent higher at 40,869.47. Likewise, the Nifty closed 59.90 points or 0.50 per cent up at 12,052.95.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 682.23 crore, and domestic institutional investors purchased shares worth Rs 311.19 crore on Tuesday, data available with stock exchanges showed.

According to traders, domestic stocks plunged as tensions in the middle-east heightened after Iran launched over a dozen ballistic missiles targeting bases where US military and coalition forces are stationed in Iraq.

The attacks were in revenge for the killing of the commander of Iran's Revolutionary Guards, General Qasem Soleimani on Friday, which was ordered by US President Donald Trump, as per Iranian state TV.

Brent crude futures surged over 1 per cent to USD 69.23 per barrel after the attack.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul fell up to 1.39 per cent.

Exchanges on Wall Street too ended on a negative note on Tuesday.

On the domestic front, advanced GDP estimates suggesting India's economic growth may drop to an 11-year low of 5 per cent in the current fiscal also kept domestic investors on edge, traders said.

Meanwhile, the rupee depreciated 19 paise to 72.01 against the US dollar in morning session.