Domestic stock markets opened with heavy losses on Thursday (April 2)—just ahead of a long weekend. The increasing tension between America and Iran, President Trump’s strong statements and the rise in crude oil prices have weakened the market sentiment. Both Sensex and Nifty opened with a fall of 2%. The Sensex fell 1,500 points, while the Nifty fell 450 points. Bank Nifty also fell by more than 1,300 points. Earlier, GIFT Nifty and Asian markets also witnessed a downtrend, while continuous selling by foreign institutional investors (FIIs) has further increased the concerns.
At 9:30 am, the Sensex was trading at 71,730, registering a decline of 1,400 points. Meanwhile, Nifty was at the level of 22,245, with a decline of 435 points. Bank Nifty was at the level of 50,114, registering a loss of 1,338 points. The Nifty Midcap and Smallcap 100 indices fell up to 2.8%. India VIX jumped by 4%. Sectoral indices like Realty, Pharma and PSU Banks fell by more than 3%. The IT index was the only index to decline by less than half a percent; All other indexes fell in the range of 1% to 3%. In the Nifty 50, HCL Tech and TCS were the only stocks to post gains, though the gains were marginal. All other shares were trading in the red. The biggest decline was recorded in Sun Pharma, IndiGo, Adani Enterprises, Adani Ports, Shriram Finance, NTPC, Asian Paints and Eternal. US President Donald Trump has clearly said that there will be no agreement with Iran and the attacks will be intensified. This statement has further increased uncertainty in global markets.
Fall in US Futures
Immediately after Trump’s statement, pressure on US futures increased. Dow Futures fell by 400 points. This is an indication that Wall Street may also see weakness today. **GIFT Nifty and Asian markets fall**
GIFT Nifty is showing signs of weakness, the index has fallen by 340 points. Meanwhile, Asian markets are also witnessing massive decline. The Nikkei fell 1,000 points. This indicates a weak start for the Indian markets.
Crude oil crosses $105
Crude oil has seen a huge surge, with prices climbing above the $105 mark. This may increase concerns about inflation and current account deficit.
Stagnation in the rise of gold, silver and metals
Although there was a rise in gold, silver and base metals for the last few days, but now they seem to be stopping. Investors seem to be avoiding taking risks at present.
Continued selling by FIIs
Foreign institutional investors (FIIs) have continued their selling for the 22nd consecutive day. The special thing is that out of the last 24 days, purchases have been seen only on two days. This is a big negative signal for the market.
American markets remain strong
The Dow Jones closed 224 points higher at 46,566, a gain of 1,400 points in three days.
The S&P 500 also closed with gains for the second consecutive day, ending at 6,575.
Nasdaq rose 250 points and closed at 21,840.
money market
The rupee remains weak. On Monday, it closed at 94.83/$ after touching a record low of 95.21.
In March, the rupee weakened 2.65%, its worst monthly performance since March 2020.
The dollar index remained steady at 99.40, and remained below the 100 mark.
bond market
US 10-year bond yields remained steady at 4.32%, indicating investors remained cautious.
movement in commodity market
Gold and silver had maintained their strength in the last four days, but now this rise has stopped. COMEX Gold was trading above $4,800, while Silver crossed the $75.50 mark.
Brent Crude remained around $100, while copper, aluminum and zinc also saw recent gains.
On MCX, gold closed above ₹1.53 lakh and silver near ₹2.43 lakh, registering strong gains in the last four days.