The domestic stock market opened with a heavy fall on Monday. In early trade, the Sensex was trading 1,670 points down at 75,879. Nifty was trading 488 points lower at 23,562, while Bank Nifty was trading 1,518 points lower at 54,394. All sectoral indices were trading in the red. PSU Bank and Realty indices saw a decline of up to 3.2%. At around 09:35 am, the Sensex was trading at 76,023, down by 1,526 points. During this period, Nifty fell by 461 points at 23,587. Bank Nifty was trading at 54,558 with a fall of 1,350 points. Midcap and smallcap indices were also not untouched by today’s fall; Both saw a decline of about 2%. Not a single stock of Nifty 50 index was trading in the green. Eicher Motors, IndiGo, Maruti, SBI, Jio Fin and Shriram Finance were among the biggest fallers.
Rising tensions between the US and Iran—as well as a potential blockade in the Strait of Hormuz and surging crude oil prices—have added to investor concerns. Apart from this, weak global market cues, fall in GIFT Nifty and pressure in Asian markets are expected to impact Indian markets today. GIFT Nifty had fallen by 340 points. However, buying by foreign institutional investors (FIIs) may provide some relief. Note that due to market holiday tomorrow, Tuesday, Nifty weekly options will expire today only; As a result, market volatility may increase further due to expiry-related adjustments.
US-Iran talks end without any result; tension increased
The ongoing talks between America and Iran have not yielded any concrete results. This has further increased the geopolitical tension. Investors now appear cautious about the possibility of any more aggressive action.
Announcement of blockade in the Strait of Hormuz: a major threat
Donald Trump has announced a blockade in the Strait of Hormuz. According to reports, in response to this US action, Iran has issued a stern warning saying that if the military ships proceed further, the ceasefire will be considered over. This could have a significant impact on global supply chains.
Crude oil crosses $100; Fear of reaching $110
Crude oil prices have once again risen above $100 a barrel, and there are now fears they could climb as high as $110. This surge in crude oil prices will increase pressure on import-dependent countries like India and may increase market volatility.
Weakness in gold and silver; The attraction of ‘safe-haven’ (safe investment) has faded
Despite global uncertainty, gold and silver have failed to show much strength. Both metals have seen a downward trend, which indicates that investors are currently turning to cash or other asset classes.
US futures and Asian markets fall
A huge decline has been recorded in American futures, the effect of which is clearly visible in Asian markets as well. Japan, China and other major Asian indices are currently trading in the red.
Weakness in GIFT Nifty; negative sign
GIFT Nifty is also seeing a decline of about 350 points, which indicates that the Indian market may have a weak start. The pressure on the market is likely to be clearly visible during the initial trading sessions.
FIIs’ buying resumes; a ray of relief
After a prolonged selloff, foreign institutional investors (FIIs) have again started buying in the cash market after 27 sessions. If this trend continues, the market may find support at lower levels.
Draft of Delhi EV policy released
Delhi government has released the draft of its new Electric Vehicle (EV) policy. Due to this, special movement (stock-specific action) may be seen in stocks related to automotive and EV sectors.
Retail inflation figures will be released today
Consumer Price Index (CPI)—or retail inflation—data for the month of March is to be released today. These data will play an important role in determining the direction of the market, especially in terms of the outlook for interest rates. **What are the main market signals?**
Global weakness, rising crude oil prices and geopolitical tensions are indicating negative trends for the market. Besides, pressure on the rupee, possible selling by FIIs and weakness in interest rate sensitive stocks remain a risk. Market volatility is likely to be high during today’s trading session, and selling pressure may be seen in the market. However, opportunities may also emerge in some select sectors and stocks.
