Markets Open Lower As Trump Withdraws Iran Nuclear Deal

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Benchmark indices opened the day lower, as US President withdrew from the Iran nuclear deal. This means sanctions on Iran could be restored, reducing crude exports from Iran and hence pressure on crude oil prices.

The Sensex was trading lower by 54 points, while the Nifty dropped 16 points as investors worried that crude could rise again, thus hurting India's growth

Markets Open Lower As Trump Withdraws Iran Nuclear Deal

Shares of oil marketing companies saw some modest reaction on worries that crude oil prices could remain elevated, thus damaging margins and profitability of these companies. Among the notable losers in trade were HPCL, BPCL and Indian Oil, all of which declined.

Shares in P C Jeweller continued to remain volatile ahead of the board meeting of the company slated for Thursday. The company plans to offer a buyback of shares and has been the most volatile stock in the last few trading sessions.

Shares in SBI Life gained ground, after the company reported net profits of Rs 396 crores. This included a one time gain.

Banking stocks saw some losses, wiith ICICI Bank in particular dropping. The share had seen a spectacular rally of 6 per cent on Thursday. Investors were worried that rising crude oil prices could force the country's central bank to raise interest rates fearing inflation.

Select banking stocks were hence under pressure in trade today, especially PSU banking stocks. Meanwhile, most of Asia was trading with losses, following the Trump decision on the Iran nuclear deal. Foreign Portfolio Investors have been consistently dumping stocks in the last few trading sessions. 

Read more about: sensex nifty
Story first published: Wednesday, May 9, 2018, 9:22 [IST]
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