Amid growing tension in international markets, Indian markets opened with heavy losses today, Friday. Shortly after opening, the Sensex fell by more than 500 points. Nifty also fell by 150 points, while Bank Nifty recorded a decline of 350 points. Barring marginal gains in Pharma, FMCG and IT sectors, all other sectoral indices were trading in the red, with Auto and Private Banking indices seeing the highest profit booking.
At 09:25 am, the Sensex was trading at 77,481, down 365 points. Shortly after opening, it touched an intraday low of 77,291. Meanwhile, Nifty was trading 102 points down at 24,224, having touched an intraday low of 24,158. Bank Nifty was trading at 55,679 with a decline of 366 points. Meanwhile, the midcap and smallcap indices were trying to extend their modest gains today.
On Nifty 50, Apollo Hospitals was the top gainer, rising 2%. Apart from this, Asian Paints, Tech Mahindra, HCL Tech, BEL, Tata Consumer and Infosys were also among the top gainers. Coal India, Axis Bank, TMPV, HDFC Bank, Hindalco, M&M and Eternal were among the day’s top losers.
The increased military tension between America and Iran in the Strait of Hormuz has shaken the sentiments of the global market. The markets are expected to be impacted by huge surge in crude oil prices, weakness in GIFT Nifty and fluctuations in US markets. Apart from this, investors will also keep a close eye on fourth quarter results, block deals and IPO listings.
Tension increases in Hormuz: America and Iran face to face
Tension between America and Iran has increased further in the Strait of Hormuz. Both countries have accused each other of attacks. Meanwhile, in a significant statement, US President Donald Trump announced that three US destroyers have safely passed through the Strait of Hormuz; However, any Iranian attack boats or military assets in the way were completely destroyed. Trump further warned that if Iran does not come forward for a deal soon, these ships could be returned.
Crude oil price crosses $102
The tension between America and Iran had a direct impact on the prices of crude oil. This morning, crude oil prices rose nearly 2.5 percent, reaching above $102 per barrel. Earlier, after three consecutive days of decline, crude oil had closed near the $100 level. This increase in oil prices may increase the concerns of oil importing countries like India.
GIFT Nifty weak; pressure on asian markets
Amid global tensions, GIFT Nifty is trading around 24,300 levels, indicating a weak opening for Indian markets. Meanwhile, selling pressure was also seen in markets of Japan and South Korea. However, Dow futures saw some strength. American markets also witnessed volatile trading sessions. After hitting record highs during the day, the Nasdaq closed marginally lower, losing about 230 points. The S&P 500 also fell from its all-time high, while the Dow Jones closed down nearly 300 points.
Shock to Trump on tariffs
The US International Trade Court has declared the 10% global tariff imposed by the Trump administration illegal. This decision is being considered a major blow to Trump on the trade policy front. This could spark a new debate on global trade and US policy.
rise in gold and silver
Due to increasing demand for safe-haven assets, there was also an increase in the prices of precious metals. Silver rose by nearly ₹5,300 to ₹258,540 per kg. Meanwhile, gold also rose by about ₹100 and closed around ₹152,300.
FII selling continues
Foreign institutional investors (FIIs) continued selling in the cash market for the third consecutive day. FIIs sold shares worth ₹341 crore in the cash segment, while the total net selling figure stood at about ₹3,250 crore. In contrast, domestic institutional investors (DIIs) continued their buying for the 10th consecutive day and invested around ₹441 crore in the market.
On the corporate earnings front, BSE, Biocon, Lupine and Pidilite posted strong results. Both Dabur’s earnings and management commentary were positive, while Britannia’s performance fell short of expectations. Today, the market’s focus will be on the earnings results of Titan, SBI and Tata Consumer. Meanwhile, in the F&O segment, earnings results of many companies including ABB, MCX, Bank of Baroda, Bank of India and Swiggy are due.
OneEMI Technology will be listed today
The IPO of OneEMI Technology Solutions, which was subscribed 9 times more, is all set to be listed on the stock exchange today. The issue price of the company was ₹171 per share. Investors will keep a close eye on whether shares list at a premium.
