NIFTY50 Plunges 0.92% on Asia Selloff, Oil Spike, June 08

The NIFTY50 index fell 215 points or 0.92% in early trade on June 8, tracking a sharp selloff across Asian markets and rising crude oil prices. South Korea’s KOSPI plummeted 9% to circuit limits, while Brent crude jumped 3.51% to $96.36 per barrel amid escalating Middle East tensions. The broad sell-off erased more than 5 lakh crore rupees from investor wealth as every stock in the 30-share Sensex basket traded lower.

Asian Markets Crash Triggers Selling Spree

South Korea’s KOSPI index plummeted 9% to a lower circuit level on June 8, dragged down by tech heavyweights Samsung and SK Hynix amid supply chain concerns. Japan’s Nikkei 225, Shanghai’s SSE Composite, and Hong Kong’s Hang Seng all traded significantly lower. The US Nasdaq tanked 4.18% on Friday, the S&P 500 fell 2.64%, and the Dow Jones dropped 1.35%, rattling global sentiment and triggering a broad unwinding of the artificial intelligence-led rally.

Oil Prices Surge on West Asia Escalation

Brent crude jumped 3.51% to $96.36 per barrel as military tensions between Iran and Israel intensified. Iran fired missiles at Israel in retaliation to Israeli aggression in Lebanon, hardening energy prices and raising inflation concerns across Asia. Analysts cited oil spike risks as a key headwind for Indian equities, given the country’s heavy dependence on crude imports.

Broad Selling Pressure Across All Sectors

The BSE Sensex tumbled 724.95 points to 73,518.39 in early deals, while the NIFTY50 dropped 222.45 points to 23,138.60. Metal, realty, and auto indices fell over 1% each. Healthcare, pharma, and FMCG stocks held relatively steady. By midday, the Sensex recovered 440 points to trade 0.59% lower at 73,803.13, while the NIFTY50 declined 145 points or 0.62% to 23,221.45.

Foreign Investors Flee Amid Rate Concerns

Strong US jobs data raised expectations that the Federal Reserve will hold interest rates steady, deterring foreign portfolio investors from emerging markets. The rupee appreciated to 94.94 from a recent low of 96.96, which analysts said could slow further FII outflows. However, relentless selling pressure persisted as global risk appetite deteriorated and investors rotated away from technology stocks.

Final Thoughts

The NIFTY50’s 0.92% drop reflects a confluence of global headwinds: Asian tech selloff, oil spike, and geopolitical risk. Recovery hinges on crude prices easing and Fed rate clarity.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.