Stock Market Updates: Tata Steel Drops 2%, Sensex Drops 800 Points, and Nifty Closes Below 22,350
Fearful of escalating hostilities in the Middle East, Monday’s equities markets plummeted. The Nifty50 is down 160 points, or 0.7%, to 22,360 levels, while the benchmark S&P BSE Sensex fell 888 points, or 1.2%, to 73,357 levels.
The BSE MidCap and SmallCap indexes saw declines of 1.34 percent and 2.08 percent, respectively, in the overall market.
The Nifty Realty index, which fell 2.3%, and the Nifty PSU bank index, which fell 1.5%, led the widespread selling.
“There are numerous headwinds that will weigh on markets today: the renewed conflict in the Middle East, proposed changes in the India-Mauritius tax treaty, and the hotter-than-expected US inflation are negatives,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. However, because an Iranian counterattack was anticipated and the market discounted the higher US inflation on Friday, some of these disadvantages are already included into the price.
The oil market is sending forth signals that suggest an escalation of the Iran-Israel crisis is unlikely. It is quite evident from President Biden’s statements that he opposes Israeli response. So, things could get better. Investors must exercise caution, too, since there is a great deal of uncertainty in such a delicate position.Because of TCS’s better-than-expected results and optimistic forecast for FY 25, IT stocks should remain strong. Because the outcomes will be positive and the prices are reasonable, banking stocks will continue to rise.
