Indian Stock Market: Equity benchmark indexes saw buying activity in Friday trading after four consecutive sessions of losses, recovering nearly a percentage point from the day’s lows.
The Sensex, which fell over 2 per cent in the previous session, opened lower, dropping 445.24 points to the day’s low of 82,051.86. Meanwhile, Nifty declined by 155.55 points and hit a low of ₹25,094.55 in intraday trade.
However, the market quickly turned around. The Sensex rose over 884 points from the day’s low to hit a high of 82,935.99, while the broader Nifty rebounded 224 points from the day’s low to hit the day’s high of 25,320.10.
The recent market downturn is due to escalating tensions in the Middle East, where tensions between Iran and Israel are escalating. India’s index has fallen more than 3.6% in the last four sessions. Additionally, the benchmark has fallen more than 4.5% since its all-time high measured on September 27th.
Apart from geopolitical concerns, several other factors have contributed to the market crash, including rising oil prices, SEBI’s regulatory changes in the F&O sector, and capital outflows from foreign institutional investors. The situation worsened after Iran launched around 180 ballistic missiles towards Israel, causing Brent crude oil prices to jump from $71 to $75 per barrel earlier in the week.
There are growing concerns that Israel could retaliate by targeting Iran’s main oil fields, causing oil prices to rise further. This is a major concern for India, which imports 80 percent of its oil. A significant rise in oil prices would raise India’s import costs and put further pressure on the country’s economy.
The broader market mirrored benchmark performance, with mid- and small-cap indexes also recovering after initial declines.
Sectoral indices showed mixed trends, with Nifty Realty, Nifty Media, Nifty Auto and Nifty FMCG falling 0.3-1.8 per cent. However, Nifty IT and Nifty PSU Bank rose about 1.5% each. Nifty Bank also rose 0.5%, while Nifty Metal, Nifty Pharma and Nifty Private Bank rose over 0.3% each.
Stock-wise, Infosys, Tech Mahindra, Titan, Axis Bank and IndusInd Bank were the top gainers on the Sensex. On the contrary, M&M, Asian Paints, Bajaj Finance, Nestle and Bharti Airtel were the top decliners.
Technical view
Vaishali Parekh, vice president of technical research at Prabhudas Liladhar, said the Nifty 50 index has fallen below the 25,300 level due to rising geopolitical tensions in the Middle East. Sentiment has been hit hard and advised to maintain a cautious approach. In the short term, the index has support near the 50-EMA zone at 25,000, but the key major support is at the 200-period moving average near the 23,100 level.
In the case of Bank Nifty, Parekh observed that the index has moved below the key 50-EMA zone of 51,900, indicating weakening bias. Short-term support is at 51,000 and critical support is at 49,600. Anything below this can worsen the situation. Banknift’s daily range is expected to be between 51,300 and 52,400 levels.
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