Sensex, Nifty fall as Middle East conflict keeps Dalal Street on edge
The S&P Sensex was down 316.43 points to 73,083.35 at 9.42 am, while the NSE Nifty50 declined 76.75 points to 22,195.75.
In Short
- Sensex, Nifty fall in early trade
- Dalal Street investors on edge amid rising Middle East tensions
- IT stocks registered a sharp decline
Benchmark stock market indices fell sharply on Tuesday as investors on Dalal Street remain concerned about the conflict in the Middle East.
The S&P Sensex was down 316.43 points to 73,083.35 at 9.42 am, while the NSE Nifty50 declined 76.75 points to 22,195.75.
Most of the broader market indices were mixed as volatility remained on the higher side, but the scnario in early trade seems to be better than yesterday.
High-weightage sectoral indices such as Nifty Bank, Nifty Financial Services and Nifty IT fell sharply, leading to heavy losses for investors. However, Nifty Oil & Gas rose over 1% as crude oil prices rose marginally.
The top five gainers on the Nifty50 were ONGC, Hero MotoCorp, Nestle India, Coal India and Maruti. On the other hand, the top losers were LTIM, IndusInd Bank, Bajaj Finserv, Bajaj Finance and Infosys.
IT stocks fell sharply in early trade amid lower hopes of early US rate cuts; the ongoing geopolitical conflict could also worsen the outlook for some firms.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, “Investors woke up to a challenging start this Tuesday, as global cues remained weak. Market sentiment was impacted by higher-than-expected inflation data and reports of potential tensions between Iran and Israel.”
He also highlighted that China’s Q1 GDP data will also dictate the Asian markets, including Dalal Street. China’s GDP in the first quarter grew at 5.3%, better than what was forecast by economists.
In addition, the focus also remains on Q4 earnings, which have just started trickling in.
Tapse also highlighted that despite global uncertainties, crude oil prices have not moved upwards and that’s a “silver lining”. He added that IMD prediction of an ‘above normal’ monsoon is also a positive development for the markets.
However, he said that “the consensus anticipates further declines in global stock markets, with Nifty's technical support identified at 22,157”.
“Options data suggests a trading range of 21700-23000 for Nifty, with attention also on Vodafone Idea’s upcoming FPO. Before delving into specifics, the recommended trade strategy includes buying on dips for both Nifty and Bank Nifty, with defined stop-loss and target levels,” he added.