Sell-off in Indian stocks continues for the third session
Apr 16, 2024
Mumbai (Maharashtra) [India], April 16 : The Indian stock markets closed on Tuesday with the third successive weak session in line with global market weakness after the escalation of the Iran-Israel conflict.
The Nifty concluded 0.56% lower at 22,147.90, while the BSE Sensex ended 0.62% lower at 72,943.68 on Tuesday's trading session.
The IT sector witnessed the most significant decline, plummeting by 2.53. The broader market outperformed the benchmarks, with the BSE MidCap index up by 0.05% and the BSE SmallCap index up by 0.57%.
"The two major factors weighing on the markets are the geopolitical risk of expanding of the Middle East conflict and the disruption it could cause to crude oil supplies. The second factor is the strong US economy based on a strong US consumer. This combined with a persistent inflation has led to a spike in bond yields and strength in the US dollar." said Ajay Bagga, Banking and Stock market expert.
Top gainers in the Nifty 50 included Eicher Motors, Divi's Laboratories, Titan, ONGC, and Hindustan Unilever, while Infosys, LTI Mindtree, IndusInd Bank, Bajaj Finserv, and Wipro were among the major laggards.
"U.S. stocks closed notably lower on Monday amidst concerns about escalating tensions between Iran and Israel. U.S. retail sales for March exceeded expectations, indicating the Federal Reserve may not rush to cut interest rates this year" said Varun Aggarwal,MD, Profit Idea.
The Asian market also closed with a decline on Tuesday with stocks dipping and the dollar surged to more than five-month highs. According to market analysts, it is propelled by stronger-than-expected U.S. retail sales for March. Meanwhile, rising geopolitical tensions bolstered gold and oil prices.
The dollar index rose, and the yen remained near 34-year lows. The focus is now shifted to China's GDP data and other economic indicators. In commodities, U.S. crude and Brent oil prices rose on Middle East tensions, while spot gold experienced marginal gains.
The stock market will remain closed tomorrow on the occasion of Ram Navmi. The trading will resume on Thursday now.
