15 April,2024 12:11 PM IST | Mumbai | mid-day online correspondent
Representative image/iStock
Indian stock markets started trading on Monday with losses, mirroring global fears about growing tensions in the Middle East. Both the Sensex and Nifty indices dipped, increasing investor concern owing to geopolitical worries.
The Sensex fell by 887.82 points to 73,357.08, while the Nifty sank by 181.75 points to 22,337.65. Only five Nifty companies advanced, while 45 declined, ANI reported.
As per the report, notable gainers included Hindalco, ONGC, TCS, Nestle India, and HCL Technologies, while top losers included BPCL, Coal India, Tata Consumer Products, Tata Motors, and Adani Enterprises.
Across Asia, stock markets fell, reaching a six-week low due to fears about the Middle East crisis, weak bank results, and predictions of increased interest rates from the Federal Reserve, the report added.
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Major benchmarks in Hong Kong, Japan, and South Korea fell, while mainland China's energy sector showed minor improvements.
The news agency report quoted Varun Aggarwal, founder and managing director of Profit Idea, stating that while global markets stabilised following the attack on Israel, tensions remained high. Oil prices fell somewhat on expectations of a confined conflict, while aluminium and nickel prices rose as a result of fresh US and UK sanctions on Russian supplies.
"Despite the short-term negative sentiment, market analysts observe support at 22,500 on a closing basis, which could potentially prevent a significant correction," he was quoted as saying in the report.
Investors face risks such as inflation and interest rate hikes, while the Middle East turmoil adds to market volatility. There is concern that oil prices may approach USD 100 per barrel, resulting in a flight to safe-haven assets such as Treasuries and gold, as well as more stock market falls, the report added.
Per the report in ANI, as Wall Street's earnings season began, big banks such as JPMorgan Chase & Co., Wells Fargo & Co., and Citigroup Inc. announced mixed results, highlighting the impact of funding costs and customer behaviour in a high-interest rate environment.
As the trading day progresses, market participants are closely watching geopolitical developments and corporate earnings for further market direction, the ANI report further stated.
