stock market
There was a decline in the stock market on Tuesday. Both Sensex and Nifty indices fell due to decline in bank, oil and gas, and pharma stocks. The mood of investors changed compared to Monday. Three reasons could be seen for this. The first biggest reason was America’s attacks in southern Iran, which again raised concerns of a long-term conflict in the Middle East. The second major reason was the prices of crude oil. Which once again appeared close to $ 100 per barrel. The third biggest reason was the fall of the rupee against the dollar.
Bombay Stock Exchange’s main index Sensex closed at 76,010, down by about 479 points or 0.63 per cent. At the same time, National Stock Exchange’s main index Nifty closed at 23,933, which was down by 98 points or 0.41 per cent. The biggest falling stocks were HDFC Bank, Trent, TCS, Bharti Airtel, Axis Bank and Titan. At the same time, there was a rise in the shares of Tech Mahindra, Eternal, Maruti Suzuki and HUL. The broader market performed better than the frontline index. Nifty Midcap 100 and Smallcap 100 indices registered gains of 0.5 percent and 0.35 percent respectively.
Tension and Crude Crude Oil
Vinod Nair of Geojit Investments said that whatever hopes there were about a possible peace agreement between the US and Iran quickly ended after the US military operation in southern Iran. According to him, due to this development there was a sudden rise in the prices of crude oil and whatever little strength the rupee had gained was also lost. He said that due to the F&O expiry of the month, technical selling pressure increased further in the already risky environment, due to which the domestic stock markets closed with a decline. Nair further said that crude oil prices still remain low on a weekly basis, due to which the markets are still considering a strong possibility that tensions in West Asia may ease.
American stock market boom
US stock index futures reached new record levels on Tuesday. In fact, investors remained optimistic about the ongoing peace talks in the Middle East despite recent military attacks. At the same time, AI-based rise in chip stocks also further strengthened the market environment. Dow Jones futures gained 0.48 per cent, while S&P 500 and Nasdaq futures gained 0.52 per cent and 0.77 per cent, respectively.
Mixed effect in Europe
A mixed trend was seen in European markets on Tuesday. After the recent rally, the market softened a bit. Rising oil prices and repeated attacks by the US in southern Iran dashed hopes of a peace deal between the US and Iran soon. The Stoxx Europe 600 index declined 0.2%, although it remained close to its highest level since the beginning of the conflict. Britain’s FTSE 100 index gained 0.7%, while Germany’s DAX index declined 0.7%. The MSCI World Equity Index remained almost stable throughout the day, but so far this month it has recorded a total gain of 3.8%.
Asian markets boom
Talking about Asian markets, Japan’s Nekkai 225 index closed at 64,996.09 with a decline of 0.25%. Earlier, on Monday, due to positive expectations regarding AI related stocks, this index had seen a tremendous rise of 2.87 percent and it closed crossing the figure of 65,000 for the first time. In the last three trading sessions, this index has registered a total gain of 8.95 percent, which is its biggest three-day gain in more than six years. Japan’s broader Topix index also closed with a slight decline of 0.1% at 3,938.46. Meanwhile, South Korea’s Kospi index also continued to benefit from the tremendous growth in the technology sector. It registered a gain of 2.6% and reached a new record level.
Impact of crude oil and rupee against dollar
The prices of Brent crude futures once again reached near $100. Extending the gains recorded in the morning session, prices jumped nearly 4%. The surge came after the US military launched strikes in southern Iran, calling the action defensive. There was tension in the market due to these incidents. US Central Command said it had struck targets in southern Iran, including boats that were allegedly trying to lay mines, and missile launch sites. According to the army, the purpose of these attacks was to protect US troops from threats from the Iranian army. As of 3:30 pm IST on Tuesday, the Indian rupee weakened 0.47 per cent to 95.68 against the US dollar; Earlier it had closed at 95.23.
