Stock Market Today: Sensex drops over 350 points; Nifty slips below 23,300; IT, realty stocks drag

Indian equity benchmark indices opened lower on Thursday, June 4, tracking weakness in global markets amid renewed tensions between the US and Iran.

At 9:15 AM, the BSE Sensex was down 382.37 points, or 0.51 per cent, at 73,963.80. The index opened at 73,935.83 against its previous close of 74,346.17.

The NSE Nifty 50 declined 128.35 points, or 0.55 per cent, to 23,277.25. The benchmark opened at 23,282.45 compared with its previous close of 23,405.60.

IT and realty stocks drag market

Selling was seen across most sectors in early trade. The Nifty IT index was the biggest loser. The Nifty Realty and Nifty Private Bank indices also traded lower.

On the other hand, the Nifty Consumer Durables, Nifty Oil & Gas and Nifty Chemical indices traded in the green and outperformed the broader market.

RBI policy decision on investors' radar

Investors are waiting for the outcome of the Reserve Bank of India's Monetary Policy Committee (MPC) meeting on Friday.

The RBI's stance on interest rates, inflation and growth will be closely watched by the market.

Middle East tensions remain a concern

Market sentiment remained weak due to rising tensions in the Middle East.

Iran reportedly targeted Kuwait International Airport on Wednesday. Earlier, the US Central Command said it intercepted multiple ballistic missiles launched by Iran and carried out defensive strikes on Qeshm Island in the Persian Gulf.

At the same time, US President Donald Trump said Iran had agreed not to develop nuclear weapons. The US also said Israel had agreed to a ceasefire with Lebanon if Hezbollah stops its attacks.

Global markets fall

US markets ended lower overnight.

The Dow Jones fell more than 600 points after touching record highs for five straight sessions. The S&P 500 and Nasdaq also ended lower, breaking their nine-day winning streak.

Asian markets were also under pressure. Japan's Nikkei, Hong Kong's Hang Seng and Singapore's Straits Times Index traded lower in early trade.

Crude oil stays elevated

Brent crude remained near USD 97 per barrel despite a slight decline in morning trade.

Higher crude oil prices are a concern for India as they can increase inflation and raise import costs.

FIIs continue to sell

Foreign institutional investors (FIIs) sold shares worth Rs 5,616 crore in the cash market on Wednesday. This was their sixth straight day of selling.

Including activity in cash, index futures and stock futures, FIIs were net sellers of around Rs 11,770 crore.

FII index futures long positions fell to 8.34 per cent, the lowest level since January 14.

Domestic institutional investors (DIIs) continued to support the market. They bought shares worth Rs 5,740 crore, extending their buying streak to 12 consecutive sessions.

Rupee weakens, metals and precious metals fall

The rupee fell 44 paise and closed at 95.71 against the US dollar.

The dollar index remained near a two-month high, while the US 10-year bond yield climbed close to 4.48 per cent.

Base metals such as zinc, copper and aluminium fell 1-2 per cent. Gold and silver prices also ended lower in the previous session.