The Indian stock market indices fell on Monday, as the fear of geopolitical tension in the Middle East saw investors, especially the foreign institutional players, withdrawing over Rs 3,000 crore.
Both the Sensex and Nifty 50 fell more than 1% each to hit two-week lows. The Sensex closed at 73,399.78 points while the Nifty fell to 22,272.50 points, respectively. The fall in broader market was sharper as the BSE Midcap and BSE Smallcap indices ended 1.5% lower each.
Foreign institutional investors (FIIs) net sold shares of Rs 3,268 crore on Monday, while domestic institutional investors net bought Rs 4,762.93 crore worth of shares, according to provisional data. With this, FIIs have net sold shares worth Rs 11,208 crores or over a $1 billion in last two trading sessions.
Nine of top 10 valued firms add Rs 95,522 cr to market valuation; Reliance, TCS lead gainers IREDA shares zoom 11% on plans to raise Rs 4,500 crore via QIP, rights issue HAL set to bag another Rs 67,000 cr LCA order, stock zooms 3%, brokerages maintain ‘Buy’ Ola Electric shares jump over 16% after flat listing
The escalation of conflict in the Middle East has raised concerns over potential increase in crude oil prices. While Brent crude oil prices surpassed $91 per barrel mark intraday, it fell 1% to $89.69 per barrel bringing relief to many. Kotak Securities said the oil prices eased on the speculation that the conflict would remain contained. However, it added that in case of any retaliation by Israel, targeting Iranian military infrastructure, it would mark the beginning of a wider conflict and that might lead to sharp rise in oil risk premium.
Also Read
Markets set for further upside, says Geojit Financials; Here’s why
Any sharp uptick in crude oil prices or even a potential of such a scenario does not bode well for equities as it will fuel inflation worries, strengthening the case for the US Federal Reserve to hold interest rates higher for a longer time.
Consequently, only six Nifty 50 companies managed to end higher on Monday. Upstream oil company Oil and Natural Gas Corp topped the list of gainers as it rose nearly 6% on prospects of higher crude oil prices.
Among top losers were Larsen & Toubro, Tata Motors, Adani Ports and Special Economic Zone, Bajaj Finance, ICICI Bank, Wipro, and Shriram Finance as they fell around 2-3%.
The advance decline ratio on the BSE was the lowest in a month at 0.31 as 2,991 stocks fell as against 913 gainers. All sectoral indices on the BSE, barring oil and gas, and energy, ended lower.
“The escalation in the potential conflict between Iran & Israel is a serious development and will likely adversely impact oil pricing. The Indian markets will be pressured over the short term as well,” said Samir Bahl, CEO – Investment Banking at Anand Rathi Advisors.
Market participants expect volatility to continue in the near-term as investors will closely monitor the developments in the Middle East and assess the possibility of a June rate cut by the Federal Reserve.
Related Posts
Proceedings are well underway for the jurying phase of the 2015 Independent Games Festival, in which discipline-specific experts play and discuss the merits of the nearly 650 games entered in the 2015 Festival Main Competition, all of which continue to push the boundaries of video game development and design Come from Read more
Ahead of the Season 2 update for Call of Duty, Activision has detailed some of the major improvements players can expect for Black Ops 6 and Warzone. This includes server updates, anti-cheat upgrades, and the ability to finally disable cross-play for Ranked Play modes.
Activision’s community update comes from various development teams, who addressed player feedback con…
Read moreA mobile version of the popular game Palworld is in the works, with PUBG company Krafton working out a licensing deal with Pocketpair to bring the game to phones.
PUBG Studios is developing the mobile version of Palworld, though additional details were not provided in the press release. Following Palworld’s release in January 2024, scammers quickly created fake versions of Palworld for mo…
Read moreDespite what the box and blurbs might tell you, 13 Sentinels: Aegis Rim isn’t really a game about piloting giant robots. I mean, sure, you do fight off massive swarms of building-sized creatures hellbent on total destruction in an alternate-universe 1980s Japan at some points. But these seemingly model-kit-ready metal combat suits are just a plot device, a cog in the story. In actuality, 13 Sen…
Read moreAs part of developer Remedy’s latest earnings briefing, the Finnish game studio confirmed that one of its most highly anticipated upcoming games, Alan Wake 2, remains on track for release in 2023. The developer also provided development updates on its four other games in development, including its Control sequels.
Plenty of games have been delayed in recent times for a variety of reasons,…
Read moreA demo for developer The Parasight’s Blacktail, a first-person surreal adventure game involving Slavic folklore and Baba Yaga, is releasing today during Steam Next Fest. To promote the launch, the Polish studio brought on the famous Polish musician Adam “Nergal” Darski of the metal band Behemoth. In addition to fronting the extreme metal band, Nergal is a founding member of the country/blues/fo…
Read moreDrifting Joy-Cons have been the bane of many a Switch players’ existence for years now. If you’re located in Europe, we have good news–Nintendo will now repair broken or faulty Joy-Cons for free in a large number of countries in that region, even if your Joy-Cons are out of warranty.
As explained by the Nintendo UK support page, Nintendo will no longer charge customer…
Read moreThe benchmark equity indices ended Thursday’s trading session slightly higher after turning red during the later market hours. The NSE Nifty 50 gained 28.50 points or 0.13% to settle at 21,647.20 points. While S&P BSE Sensex closed 63.47 points higher or 0.09% to settle at 71,721.18 points. Nifty Bank ended higher by 77.50 points or 0.16% to settle at 47,438.35 points.
The…
Read moreBy Anand James
How poised are we to extent the incredulous uptrend that is on? Among sectors, auto and realty appears to be slowing down having taken the baton much early, but my sense is that they are not fully done yet. Meanwhile laggards are catching up, like IT and pharma. But along this theme, metal index has the lowest YTD gains of 13.82%, but our bets are on FMCG, which ha…
Read moreIn a historic feat, the Bombay Stock Exchange (BSE) has set a new record with over 29 crore contracts traded, reaching a peak Open Interest (OI) of 65.7, and boasting a remarkable notional turnover exceeding ₹192 lakh crore. The achievement marks a significant milestone in the exchange’s history and underscores the robust participation and confidence of market participants.
…
Read more