Key benchmark indices traded with deep cuts on Friday as a flare-up in Middle East conflict dented investor sentiment
Key benchmark indices traded with deep cuts on Friday, sliding for the 5th day in a row as a flare-up in Middle East conflict dented investor sentiment. The S&P BSE Sensex crashed 599 points, or 0.8 per cent, at 71,890 levels, while the Nifty50 plunged to 21,822 levels, down 174 points or 0.79 per cent.
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28 of 30 Sensex stocks and 44 of 50 Nifty stocks slipped, dragged by BPCL, HPCL, Bajaj Auto, Infosys, Axis Bank, L&T, Nestle India, SBI Life, LTI Mindtree, TCS, HCL tech, IndusInd Bank, Power Grid, and SBI. All these stock prices were down in the range of 1 per cent to 2.5 per cent.
In the broader markets, the BSE MidCap and Smallcap indices fell 1 per cent each.
The sell-off was broad-based with the Nifty PSU bank (down 1.7 per cent), Media (down 1.4 per cent), and It (down 1.2 per cent) leading the losses.
Stock Market View: Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
Reports of the feared escalation of the Iran-Israel tensions have spooked the markets. Distinct weakness in Asian markets and sharp cuts in US futures reflect heightened nervousness in equity markets.
There are headwinds from the bond markets, too. The sharp spike in US bond yields triggered big FII selling which touched Rs 4260 crores yesterday. More FII selling can be expected in the near-term putting pressure on largecaps.
Investors may wait for clarity to emerge on the geopolitical front. Uncertainty is very high.
Read More: Stock Market Updates: Sensex Turns Negative, Falls 150 Points; Nifty Below 22,200
Global Cues
Asian shares and bond yields plummeted, while the dollar, yen, oil, and gold surged, driven by reports of a significant escalation in hostilities in the Middle East.MSCI’s broadest index of Asia-Pacific shares plunged by over 2%, and U.S. stock futures indicated a decline of 1.3%, reacting to media reports suggesting Israeli missiles had targeted a site in Iran.
US stocks closed near the unchanged mark on Thursday, as investors sifted through the latest corporate earnings, while economic data and comments from Federal Reserve officials suggested the central bank was unlikely to cut interest rates in the near future.
