The Indian Stock Markets on Monday witnessed bloodbath as the indices fell due to fresh tensions in the Middle East and renewed protests in India, and disrupted Parliament sessions.
Nifty 50 slipped below 24,200 and the Sensex loses more than 700 points. Nifty 50 fell as much as 0.8% to 24,149.90. The Sensex declined as much as 707 points, or 0.9%, to 77,444.79.
Asian markets also opened on a cautious note, mirroring the overnight weakness on Wall Street.
Rajesh Palviya, Head of Research, Axis Direct said, “Global sentiment, however, remained subdued. US equities witnessed sharp selling, with the Nasdaq falling 1.40%, the S&P 500 declining nearly 1%, and the Dow Jones losing 0.77%, as weakness in semiconductor and AI-related stocks weighed heavily on technology shares.”
“For domestic markets, crude oil remains the most critical variable. Brent crude is hovering near the $90 per barrel mark, its highest level in nearly a month, amid escalating geopolitical tensions between the US and Iran around the Strait of Hormuz. A sustained rise in crude prices could increase inflationary pressures and widen India’s import bill. Nevertheless, GIFT Nifty indicates a largely flat opening, as India’s IT-services-driven market has relatively limited direct exposure to the semiconductor-led weakness impacting global peers,” he added.
Aamir Makda, Commodity & Currency Analyst, Technical Research at Choice Broking on crude said, “US WTI Crude oil has resumed with gapped up and inclined around $85 per barrel in Asian trade today, continue its last week’s gains due to escalating hostilities between US- Iran which has raised fears of further disruption to Oil flows from Middle east. MCX Crude oil August contracts has resumed gapped higher at 8080 and likely to remain higher today if price will sustain the support levels of 7790 and 7950. Key resistance would be at 8247 – 8329.”