The domestic stock market had a weak start today, which coincided with the weekly expiry of Nifty. Markets opened in the red. At 09:26 am, the Sensex was trading 361 points lower at 76,907. Nifty was down 98 points at 23,978. Bank Nifty was trading 243 points lower at 54,537. Trading in Nifty Midcap and Smallcap indices was mixed. India VIX rose by 2.5%.
Except for media, FMCG and IT sector indices, all other indices were trading in the red. The biggest decline was seen in NBFC, private banks and auto sectors. On Nifty, Kotak Bank, Bharti Airtel, Dr Reddy’s, ONGC and TCS were the biggest fallers. On the contrary, Adani Ports, Eicher Motors, Jio Finance, Adani Enterprises, Reliance and Shriram Finance were the top gainers.
In terms of market triggers, global cues remain weak, and rising tensions in the Middle East have added to investor concerns. Market volatility is likely to increase today due to the increasing conflict between Iran and UAE, rise in crude oil prices and huge fall in American markets. Apart from this, release of earnings reports of many big companies and withdrawal of FIIs (Foreign Institutional Investors) will also play an important role in deciding the direction of the market.
Tension has increased further in the Middle East. Iran has launched missile and drone attacks targeting UAE oil facilities, ports and ships. Under ‘Project Freedom’, Iran also targeted a South Korean ship. In retaliation, the US claimed to have destroyed seven small Iranian naval boats. UAE has clearly said that these attacks will be responded to with full force. Emergency alerts have been issued for residents of Dubai and Abu Dhabi.
Trump’s warning: Brent crude near $114
Former US President Donald Trump has given a strong warning to Iran. Amid this rhetoric and rising tensions, Brent crude has gained nearly 6%, reaching close to $114 per barrel. Rising oil prices are considered a negative factor for oil importing countries like India and can have a negative impact on market sentiment.
GIFT Nifty weak; pressure on asian markets
Following rising tensions in the Middle East, GIFT Nifty sees a fall of 135 points; The index was trading around 24,070, indicating a weak start for Indian markets. Due to global uncertainties, investor sentiment remains cautious at present.
Heavy fall in American markets
Geopolitical tensions also affected US markets. Dow Jones fell 557 points to close at the lowest level of the day. The Nasdaq fell 46 points, ending its three-day losing streak. The S&P 500 also closed lower, falling 29 points.
FIIs became buyers after 9 days
A positive sign came when foreign institutional investors (FIIs) became buyers in the cash market after nine trading sessions. Meanwhile, domestic institutional investors (DIIs) remained net buyers for the seventh consecutive day. This purchase may provide some support to the market amid the current decline.
Rupee near record low
The rupee fell 18 paise to close at record low of 95.09 against the US dollar. On April 30, the rupee had hit an all-time low of 95.33 per dollar. The weakening rupee remains a matter of concern for companies dependent on foreign investment inflows and imports.
Heavy fall in gold and silver
In the commodity market, gold fell by ₹2,013 to close at ₹1,49,339, while silver fell by ₹7,042 to ₹2,43,895. On COMEX, gold is trading at a five-week low, while silver remains near a one-month low. Stocks announcing results to keep an eye on
On the corporate front, Manappuram Finance, Petronet LNG and KEI Industries have posted strong results; As a result, these stocks may see a lot of trading activity.
Results of many big companies expected today
Among Nifty majors, L&T and M&M are scheduled to announce their results today. Meanwhile, in the F&O segment, results of many companies including Coforge are awaited – which may see sharp movement in these stocks.