Equity benchmark indices traded lower during early hours on Wednesday tracking losses in Asian peers as oil prices surged after Iran fired retaliatory attack at US forces based in Iraq.
Besides, the GDP growth has been forecast to dip to an 11-year low of 5% in the current financial year, mainly due to poor performance by the manufacturing and construction sectors. At 10:15 am, the BSE S&P Sensex dipped by 88 points to 40,781 while the Nifty 50 edged lower by 45 points at 12,008.
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All sectoral indices were in the red zone except for Nifty IT which gained slightly by 0.15 per cent. Nifty PSU bank lost by 1.34% each, metal by 0.9% and realty by 0.6%.
Among stocks, Bharat Petroleum Corporation took a hit of 2.2% at Rs 450.75 per share while IndianOil Corporation dropped by 1.4%.
Infrastructure engineering major Larsen & Toubro dipped by 2% as Eicher Motors, JSW Steel, Hindalco, Kotak Mahindra Bank and UPL traded in the negative terrain.
However, IT majors Tata Consultancy Services and Tech Mahindra besides Yes Bank and Bajaj Auto showed marginal gains.
Meanwhile, Asian financial markets were roiled with stocks sliding as investors feared a wider conflict in the Middle East.
MSCI’s broadest index of Asia Pacific shares outside Japan was down by 0.47% and China’s blue-chip CSI300 index was 0.48% lower. Japan’s Nikkei was down by 1.2%.
Iran’s missile attacks on the Ain Al-Asad airbase and another at Erbil in Iraq early on Wednesday came hours after the funeral of an Iranian commander whose killing in a US drone strike has intensified tensions in the region.
US President Donald Trump said in a tweet late on Tuesday that an assessment of casualties and damage from the strikes is underway and that he will make a statement on Wednesday morning (local time).
(ANI)