The stock market had a weak start on Monday (April 20). As soon as the markets opened, they were seen falling rapidly and entering the ‘red zone’. After opening, Sensex fell by 200 points. Nifty also weakened by 70 points and slipped below the level of 24,300. However, major markets saw a slight uptick. Despite huge fluctuations, the markets seemed to be gradually moving back into the ‘green zone’.
At 9:25 am, the Sensex was trading at 78,707, up 213 points. Nifty was trading at 24,402 with a gain of 48 points. Bank Nifty was at 56,860 with a gain of 294 points. While IT, Metal and Realty indices witnessed decline, the rest of the indices had recovered and were trading in the ‘green zone’. The PSU Bank index rose 1 percent, which supported the Bank Nifty.
In Nifty 50, SBI, Trent, ICICI Bank, Adani Enterprises, Max Healthcare, Adani Ports, Asian Paints and Axis Bank were the top gainers. On the contrary, Jio Financial Services, Hindalco, TMPV, HDFC Bank, Coal India, HDFC Life and Eternal were the biggest losers. Global and domestic cues for the market still remain highly volatile. Growing uncertainty over the Strait of Hormuz, US-Iran tensions and sharp fluctuations in crude oil prices are expected to determine the market direction. Although a strong global rally and buying by FIIs seems to be providing some support, geopolitical risks still remain the biggest concern.
**Huge fluctuations in crude oil**
Due to uncertainties regarding the opening of the Strait of Hormuz and US-Iran tension, crude oil prices are witnessing huge fluctuations. After falling to $86 on Friday, Brent crude bounced back this morning to around $96—a factor that is expected to remain a major trigger for the market.
Trump’s strong warning to Iran
Before the ceasefire deadline ends, Donald Trump has issued a stern warning to Iran. He has clearly said that if no agreement is reached now, large-scale military action may take place. Meanwhile, a US delegation is scheduled to visit Islamabad today for talks.
Increasing uncertainty regarding talks
Despite signs of easing tensions, uncertainty remains. Iran has refused a second round of talks with the United States. According to Iranian media, negotiations are not possible in the current environment of the US blockade in the Strait of Hormuz.
Increasing military conflict in Hormuz
Tension has further increased in the Strait of Hormuz. America attacked and seized an Iranian cargo ship, which has drawn a strong reaction from Iran. Terming the incident as piracy, the Iranian military has warned of retaliation.