stock market decline Today: bse sensex And Nifty50 closed lower in trade on Thursday, in line with global cues middle east tensions and increasing crude oil pricesBSE Sensex closed the day down 2.10% at 82,497.10 nifty50 The day closed at 25,250.10, down 2.12%.
Equity investors lost Rs 9.78 lakh crore due to the massacre on Dalal Street. The market capitalization of companies listed on the Bombay Stock Exchange (BSE) declined by Rs 9,78,778.57 crore in just one trading session, taking the total value to Rs 4,65,07,685.08 crore ($5.54 trillion). The BSE Sensex is down nearly 4% from its high of 86,000 last week.
The risk of wider regional conflict has increased after Iran’s missile attack on Israel. While Iran insisted it had “no interest in a widespread war” following the attacks, Israel has vowed to retaliate.
Evercore ISI, an investment banking advisory firm, noted in a client note that “Iran’s decision to respond to Israel’s devastating attacks against its proxy Hezbollah, including a new ground attack against Israel with a ballistic missile attack involved, increases a widespread risk.” The regional conflict that could draw the US in and disrupt oil markets, however, according to an ET report, suggests market analysts may be keeping the potential downside in stock markets under control.
Stock Market Outlook: Where are Sensex and Nifty headed?
According to Sandeep Raina, executive vice president-research, Nuvama Professional, the market recovery is temporary in nature. “The market has improved due to changes in derivatives regulations and expiry scheduled for today,” Raina told TOI. “However, this is a temporary reaction and we do not expect any major improvement. The market should stabilize and return to normal levels in the coming days.
Oil prices have risen due to rising tensions in the Middle East, with concerns that supplies from major producers could be disrupted. For countries like India that are heavily dependent on oil imports, the rise in crude oil prices is a significant concern, as it can have a significant impact on their import bill and the overall economy.
Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services, warned, “The situation will change if Israel attacks any oil installation in Iran, which will lead to a huge surge in crude oil. “Can be even more harmful.” Importers like India, therefore, investors should keep a very close eye on the evolving situation.”
Narendra Solanki, Head Fundamental Research – Investment Services, Anand Rathi Shares and Stock Brokers has predicted increased volatility in the Indian stock markets in the coming weeks.
“The ongoing geopolitically induced risks and the ongoing US election cycle may have an impact on global markets including India in the short term. Also, we are entering the results season starting next week and it is also going to involve steps depending on the quality of the results,” Solanki told TOI.
“Therefore, I see news-based volatility in the market for 2-3 weeks in the near future. Investors can make some profits in stocks that have moved far beyond the fundamentals and look for new ideas and add in an orderly manner,” he said.
Roar of the Chinese Dragon: India’s biggest concern!
For investors in India, the resurgence of sugar stockAnalysts believe companies that have performed poorly in recent years may be a more significant concern.
The Chinese government recently announced a series of economic stimulus measures, which has led analysts to predict that the surge in Chinese stocks could continue. As a result, there is a possibility that some funds may be redirected from India to China, as global investors have been favoring India over China in recent times.
The stimulus package recently introduced by the Chinese government is being seen as a game-changer for the country’s economy and stock markets. Victoria Mio, head of Greater China Equities and portfolio manager at Janus Henderson, believes shifting the focus from debt control to growth support could be the key to restoring investor confidence and unlocking value in China’s markets.
“As global investors seek stability amid uncertainty, the Chinese government’s decisive pivot from debt control to growth support could be the catalyst needed to restore confidence and unlock value in China’s markets.”
The impact of this stimulus package is already being felt on the Chinese stock market, with the SSE Composite Index rising more than 15% in the past week, including an impressive 8% rise on Tuesday.
Andrew Holland, CEO of Avendus Capital Public Markets Alternate Strategies, attributes the surge to short covering and growing confidence in the effectiveness of government policies. They also suggest that some capital outflow from India may have been redirected to China to take advantage of the sharp rally.
Looking to the future, Hollande believes all emerging markets will benefit from global interest rate cuts. For India in particular, investors will be closely watching the upcoming results season to assess the health of the economy and individual companies.
