Indian stock market closes in red amid the ongoing tensions in Middle east
Apr 15, 2024
Mumbai (Maharashtra) [India], April 15 : Amid the ongoing tensions in west Asia, the Indian market closed with a decline on Monday. The Nifty 50 concluded with a 1.07% decline at 22,277.85, while the BSE Sensex closed with a 1.16% decline at 73,300.78
In the Nifty 50 top gainers included ONGC, Hindalco, Maruti Suzuki, Nestle India, and Britannia, while notable losers were Shriram Finance, Bajaj Finserv, Wipro, ICICI Bank, and Eicher Motors.
Except the oil & gas sector, all other sectoral indices closed in negative territory on Monday. The Bank and Financial Services sectors saw significant declines of 1.65% and 1.75%, respectively. Other heavyweight indices such as IT (-1.59%), Healthcare (-1.36%), and Consumer Durables (-1.30%) also faced notable losses.
The broader market mirrored the trend, with the BSE MidCap index down 1.58% and the BSE SmallCap index down 1.54%. The effect on the supply of the crude oil is less as the ongoing tensions in the middle is under control for now.
"As of now there is not a major reaction in Crude price on middle east war as there isn't and supply constraint signs from Iran. Crude prices trended weak below 85 dollaras in WTI as war tensions were seen neutral" said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.
For the coming week, the investors will closely monitor the results of the major banks in the USA. The market experts predicted that market may react further if the results presented against the market sentiments.
"As earnings season unfolds on Wall Street, major banks' results shed light on the US economy's performance amid persistent inflation and interest rate uncertainty. Investors are now turning their attention to key economic data releases and upcoming meetings of international financial institutions" said Varun Aggarwal, Profit Idea.
In Asian markets, shares slid to their lowest level in six weeks, following a downturn in US equities driven by escalating tensions in the Middle East, disappointing bank earnings, and the anticipation of prolonged higher interest rates by the Federal Reserve.
"The Bank Nifty index has continued to face strong bearish pressure, with visible selling during intraday bounces. The index is poised to test its support at 47,500, which aligns with the 20-day moving average" said Kunal Shah, Derivative Analyst, LKP Securities.
