Sensex opens 1,200 points lower, Nifty 50 drops over 1% amid Iran- Israel war.
India’s stock market experienced a sharp decline on Thursday, with key benchmark indices—Sensex and Nifty 50—plummeting over 1% in early trading.
The downturn was largely driven by pessimistic global market sentiment, sparked by escalating geopolitical tensions in the Middle East.
Investors’ concerns intensified amid growing fears of an all-out conflict between Iran and Israel, prompting a risk-averse approach. The sell-off reflected investors’ caution, as they weighed the potential implications of heightened tensions on global economic stability.
Key Market Highlights:-
• Sensex and Nifty 50 opened over 1% lower
• Weak global cues fueled the decline
• Geopolitical tensions in the Middle East sparked fears of Iran-Israel conflict
• Investors adopted a cautious stance, driving the market downturn
The market volatility underscored the sensitivity of global financial markets to geopolitical developments, particularly in regions critical to international trade and energy supplies. As tensions continue to unfold, market participants remain vigilant, bracing for potential further fluctuations.
The Sensex crashed 1,264.20 points, or 1.50%, to open at 83,002.09, while the Nifty 50 opened 344.05 points, or 1.33%, lower at 25,452.85. Nifty 50 has fallen 3% in four sessions.
India’s stock market experienced a significant downturn, resulting in a staggering ₹5.5 lakh crore erosion in market capitalization across all listed companies on the Bombay Stock Exchange (BSE). The total market capitalization now stands at approximately ₹469 lakh crore.
This substantial decline reflects the widespread impact of global economic uncertainty and geopolitical concerns on investor sentiment, leading to a notable drop in stock valuations.
At 2:12 pm, the 30-pack Sensex was down 1,814 points or 2.15 per cent at 82,452. The NSE benchmark traded 558 points or 2.16 per cent lower at 25,238. Such was the fall in the domestic indices that around Rs 10 lakh crore of BSE market capitalisation (m-cap) was wiped out.
Key reasons behind today’s fall
Iran- Israel conflict
A combination of factors has culminated in a sharp market correction. The surge in crude oil prices, sparked by Iran’s missile attack on Israel, has heightened investor concerns.
Simultaneously, the Securities and Exchange Board of India’s (Sebi) tightening of norms for futures and options (F&O) trading has added to market jitters.
According to Kotak Institutional Equities, domestic benchmarks had been trading at inflated levels, increasing the likelihood of a correction. The convergence of these factors has now led to a significant downturn.
BSE Stocks See Mixed Trend: 65 Hit 52-Week Lows, 221 Reach 1-Year Highs
The Indian stock market experienced a mixed trend, with 65 stocks on the Bombay Stock Exchange (BSE) plummeting to their 52-week lows.
Notable decliners included:- Equitas Small Finance Bank Ltd- RBL Bank- Ujjivan Small Finance Bank Ltd
Conversely, 221 stocks reached their one-year highs, indicating ongoing market volatility.
This divergence reflects the market’s cautious sentiment, with investors reassessing their portfolios amidst global economic uncertainty.
FII-DII data
Foreign institutional investors (FIIs) took out Rs 5,579.35 crore worth of shares on a net basis during the previous session while domestic institutional investors (DIIs) purchased Rs 4,609.55 crore worth of shares, exchange data showed.
Global Market
On the global front, Asian markets were also trading with sharp cuts. South Korea’s Kospi index was down 1.22 per cent and Hong Kong’s Hang Seng went down 1.47 per cent.
