Updates on the Stock Market: Sensex Drops 600 Points, Nifty Below 21,850 Due to Iran-Israeli Tension
Friday saw significant declines in major benchmark indexes, falling for the fifth day in a row as market confidence was weakened by a resurgence of hostilities in the Middle East. The Nifty50 fell to 21,822 levels, down 174 points, or 0.79 percent, while the S&P BSE Sensex plunged 599 points, or 0.8 percent, to 71,890 levels.
Lead by BPCL, HPCL, Bajaj Auto, Infosys, Axis Bank, L&T, Nestle India, SBI Life, LTI Mindtree, TCS, HCL Tech, IndusInd Bank, Power Grid, and SBI, 28 of 30 Sensex stocks and 44 of 50 Nifty stocks fell. The declines in the values of these stocks ranged from 1% to 2.5%.
The BSE MidCap and SmallCap indexes declined 1% each in the larger markets.
The Nifty PSU bank (down 1.7%), the media (down 1.4%), and it (down 1.2%), led the losses in this widespread sell-off.
Dr. V. K. Vijayakumar, Chief Investment Strategist of Geojit Financial Services, has an opinion on the stock market.
The markets have been rattled by reports of an anticipated increase in Iran-Israel hostilities. Increased anxiety in the stock markets is reflected in the notable downturn in Asian markets and the dramatic reductions in US futures.
The bond markets also provide challenges. Significant FII selling, which reached Rs 4260 crores yesterday, was sparked by the sudden increase in US bond rates. In the near future, further FII selling is likely to occur, which will increase pressure on largecaps.
Investors could hold off until the geopolitical situation becomes more clear. It is highly uncertain.
Worldwide Cues
Reports of a major uptick in hostilities in the Middle East caused Asian markets and bond rates to collapse, while the dollar, yen, oil, and gold rose.In response to media reports that Israeli missiles had attacked an Iranian location, U.S. market futures showed a 1.3% fall and MSCI’s broadest index of Asia-Pacific equities fell by more than 2%.
US equities ended Thursday close to flat as traders digested the most recent company reports. At the same time, economic statistics and remarks from Federal Reserve officials hinted that a rate drop by the central bank was not expected anytime soon.
