Domestic benchmark indices, Sensex and Nifty, opened in the red on Friday, continuing their losses from the previous session, driven by weak global cues, rising crude oil prices, and escalating US-Iran tensions.
Author: Akshita Jain | EQMint | Events
By 9:19 am, the BSE Sensex had dropped 88.05 points, or 0.11%, to 82,410.09, after briefly falling by 291 points in early trading. The NSE Nifty was down by 32.45 points, or 0.13%, at 25,421.90, touching an intraday low of 25,386.20.
Brent Crude Surge and US-Iran Tensions Weigh on Markets; IT Stocks Decline
“Brent crude’s sharp rise to $72 reflects market fears and uncertainty,” said VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. He added, “President Trump’s warning that ‘Iran has 10 to 15 days to strike a deal or bad things happen’ has put the markets on tenterhooks.”
Among Sensex constituents, Infosys declined 1.80% to Rs 1345. Tech Mahindra slipped 1.03%, while HCL Technologies, Eternal, and UltraTech Cement were down 0.72%, 0.61% and 0.50%, respectively.
Vijayakumar stated, “The market’s short-term direction will depend on whether a deal is reached after the standoff or if missiles are launched.” He also highlighted that the ongoing weakness in IT stocks was adding further pressure on the market.
Most Asian markets were down. Japan’s Nikkei 225 fell 1.29% to 56,726.73, South Korea’s Kospi increased by 1.47% to 5,760.95, and Hong Kong’s Hang Seng dropped 0.55% to 26,557.90. Meanwhile, the markets in China were closed for the Lunar New Year holidays.
Wall Street Slips; Sensex and Nifty Tumble Amid Global Uncertainty
Wall Street began the overnight session on a weak note, with all three major indices finishing lower. The S&P 500 dropped 0.28%, closing at 6,861.89, the Dow Jones Industrial Average fell 0.54% to 49,395.16, and the Nasdaq Composite declined 0.31%, ending at 22,682.73.
“Among a host of crises, the robust economy of India and the revival of corporate earnings as seen in Q3 results, are positives for the market. Hopefully, if the US-Iran brinkmanship gets resolved soon, the market will recover,” Vijayakumar added.
On Thursday, the Sensex tanked 1236.11 points or 1.48%, to close at 82,498.14. The Nifty fell 365 points or 1.41%, to end at 25,454.35.
“So, investors might prefer to stay on the sidelines and watch the developments in West Asia. At the same time, investors who believe in a deal can take advantage of the current market weakness to buy fairly valued, quality stocks in banking and financials, autos, pharmaceuticals, hotels, leading capital goods, and telecom. Crisis, in hindsight, has been turning points for purchases,” Vijayakumar said.
For more such information visit EQMint
Source link: BusinessToday
