The escalating conflict in the Middle East has again put India under pressure and all sad stock market news is coming from all the ways. The domestic stock market has declined as it opened after the holiday and dropped significantly by over 1% in the beginning only. At around 12.30 pm, both Nifty 50 and Sensex are trading approximately 1.65% lower than yesterday’s closing price level. With the again freshly brewing tensions in the Middle East, the overall global cues turned sluggish which is further dragging Indian markets down. The India VIX index, which indicates the market volatility, has widened by over 9% at around 12.45 pm.
Sectoral overview
At the beginning of today’s market session metal sector was trading in green but now at around 12.45 pm, all the sectors have turned red taking the overall market down further and signaling a stock market crash.
The Realty sector declined the most, Nifty realty tanked more than 3% today until 1 pm while the automobile sector followed the downfall with Nifty Auto declining 2% until now, followed by the financial services, and private banks. All the financial services sectoral indices plunged close to 2% today as the market nears the closing time.
Even in a festive-led market, the consumer durable sector and FMCG sector are down over 1% as indicated by the Nifty FMCG and Nifty consumer durables sectoral indices.
The market cap indices such as BSE Midcap and BSE Smallcap also declining since the day started. The BSE Midcap index plunged over 2% while the BSE smallcap was down by 1.72% at around 1.39 pm.
Top stock activities
Today, the stocks that are still in green can be counted on the fingers, as only a few are there which include JSW Steel, Dr. Reddy, and Sun Pharma but the change in these stock prices is insignificant Sun Pharma gained 0.22% until 1.24 pm today or Dr. Reddy gaining 0.23%. JSW Steel, being a metal stock gained close to 1% though.
Today, the nifty top loser includes BPCL which tanked the most by a whopping 5.04% followed by a 3.88% plunge of Shriram finance, LT tanked by 3.87%, Asian paint dragged down by 3.81%, and so forth.
Markets are filled with negative sentiment today as the conflict going on in the Middle East is intensifying as Israel launched a ground operation in Lebanon, which started an airstrike. On the other part, Iran avenged the death of Hezbollah Leader Hassan Nasrallah with a ballistic missile strike.
Global market
The conflict in the Middle East has turned the overall market sentiment negative. The Asian market indices are showing mixed signals as Nikkei 225 has surged 1.93%, while Straits Times has only gone up by 0.18% on the other hand, the Hang Seng index has tanked close to 1.5%. The US Market was also muted with nominal changes as was the European market.
Wrapping up
It is quite surprising and disheartening for the investors to see the market sentiment be so harsh right at the beginning of the Navratri. However, the plunge in the global and domestic markets is primarily due to the Middle East tension and thus, if nothing worse happens there, the domestic market can at least revive with the festive starting today.
Source: MoneyControl
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