BUSINESS

Sensex plummets more than 900 points due to worries about the situation in the Middle East and sluggish global trends

In early trading on Monday, key equities indexes plunged, with the Sensex falling 929.74 points. The decline was attributed to both negative global market trends and the continuing turmoil in the Middle East.

The markets were also negatively impacted by withdrawals of foreign funds and US inflation data that was higher than anticipated.

Maintaining the downward trend from the previous day, the 30-share BSE Sensex fell 929.74 points to 73,315.16. At 22,302.50, the NSE Nifty fell 216.9 points.

The biggest laggards from the Sensex basket were Asian Paints, Tata Motors, State Bank of India, Tata Steel, Power Grid, NTPC, and Bajaj Finserv.

Tata Consultancy Services surged by about 1% after the IT services giant’s announcement on Friday that its net profit for the January–March quarter of FY24 increased by 9% to Rs 12,434 crore, mostly attributable to robust domestic business despite challenges in the company’s primary international markets.

HCL Technologies and Nestle were the other winners.

Shanghai was quoted positively in Asian markets, but Seoul, Tokyo, and Hong Kong were trading at a lower level. Wall Street had a sharp decline on Friday.

The benchmark for world oil, Brent crude, fell 0.17 percent to USD 90.30 a barrel.

According to exchange statistics, foreign institutional investors (FIIs) offloaded stocks on Friday worth Rs 8,027 crore.

“Many negative factors will impact markets today, including the renewed Middle East conflict, proposed modifications to the India-Mauritius tax treaty, and the unexpectedly high US inflation rate,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

However, he said that some of these drawbacks are already included in the price since the market discounted the higher US inflation on Friday and an Iranian reprisal was anticipated.

The Income Tax agency said on Friday that the agency has not yet signed or notified the revised India-Mauritius protocol on double taxation avoidance agreement (DTAA).

On March 7, 2024, India and Mauritius signed a DTAA modification that included the principle purpose test (PPT), which limits tax evasion by guaranteeing that benefits under the treaty are only given for legitimate business purposes.

The benchmark BSE fell 793.25 points, or 1.06 percent, on Friday, closing at 74,244.90. To reach 22,519.40, the NSE Nifty fell 234.40 points, or 1.03%.

According to official statistics issued on Friday, retail inflation inched closer to the Reserve Bank’s objective of 4% in March, falling to a five-month low of 4.85% mostly as a result of declining food costs.

Based mostly on the mining industry’s strong performance, India’s industrial output growth increased to a four-month high of 5.7% in February 2024, according to official statistics issued on Friday.

Related Articles

Back to top button