Sensex today: Benchmark indices ended lower on October 9, with Nifty around 19,500, amid selling across sectors.
At the close, the Sensex fell 483.24 points or 0.73 percent to 65,512.39, and the Nifty fell 141.20 points or 0.72 percent to 19,512.30. About 970 stocks advanced, 2,699 stocks declined and 129 stocks remained unchanged.
Stock markets wobbled under selling pressure on Monday as geopolitical developments between Israel and Hamas worsened sentiment. Oil prices rose as much as 8 percent in two days, fueling fears of increased inflation around the world.
The volatility gauge, India VIX, zoomed by 12 percent today.
Adani Ports, Hero MotoCorp, HDFC Life, M&M, BPCL, Bajaj Finance, SBI, Tata Steel, Kotak Bank, Asian Paints, HDFC Bank, Adani Enterprises and Titan Company fell between 1 and 5 percent today.
The pain, meanwhile, was severe in the broader market, with the BSE MidCap and Smallcap indices losing 1.2 per cent and 1.7 per cent respectively.
Within the sectors, all indices were lower, led by the Nifty PSU Bank index (down more than 3 percent), followed by the Nifty Media index (2.4 percent).
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The conflict between Israel and Hamas has introduced enormous uncertainty to the markets. No one knows how this war will develop. From a market perspective, it is important to understand that while the death and destruction is tragic, it is currently unlikely to cause a major oil supply disruption, affecting major oil importers such as India. But the situation will change if Iran, a major supporter of Hamas, is drawn into the war. That could disrupt oil supplies, causing a spike in crude oil, which could create a risk in the market.”
“The conflict between Israel and Hamas has introduced enormous uncertainty to the markets. No one knows how this war will develop. From a market perspective, it is important to understand that while the death and destruction are tragic, it is currently unlikely to cause a major oil supply disruption, affecting major oil importers such as India. But the situation will change if Iran, a major supporter of Hamas, is drawn into the war. That could disrupt oil supplies, causing a spike in crude oil, which could create a risk in the market.”
Markets tank after conflict escalates in the Middle East
Santosh Meena, head of research at Swastika Investmart, said: “The ongoing conflict in Israel is an unforeseen event impacting the market, and its effects may take some time to be fully absorbed. It is essential to monitor the situation closely, especially with regard to the possible involvement of other actors such as Iran. The possibility of a third front involving Iran is a major concern as it could cause a sharp increase in crude oil prices.”
“From a technical point of view, the period 19300-19250 is a critical demand zone. Until the market stabilizes within this range, it is likely to remain in a sideways pattern and face a notable obstacle around 19800. A break below 19250 could lead to a healthy correction, possibly reaching the 18800 level. For short-term traders, it is advisable to be cautious and not act hastily. On the other hand, a substantial correction could provide an excellent buying opportunity for long-term investors,” he added.
Global signals
The Hong Kong stock exchange slowed trading in both the securities and derivatives markets on Monday morning due to Typhoon Koinu.
The Hong Kong Observatory said storm signal No. 8 would remain in effect before 11 a.m. (0300 GMT), while the rain storm warning signal was now black, meaning heavy rain has fallen or is expected to fall generally over the city and will likely continue. .
The safe-haven dollar and Japanese yen rose on Monday as violence in the Middle East spooked markets, while a booming US jobs report gave the dollar a further lead.
U.S. stock futures fell in Asia on Monday as military conflict in the Middle East boosted oil and government bonds, while September’s blistering U.S. jobs report lifted interest rates ahead of inflation data later in the week.