Sensex opened around 158 points higher at 73,477.53, while the Nifty 50 gained around 67 points to open at 22,780 on Monday. However, the benchmark indices soon slipped into the red. Sensex declined more than 360 points to 72,958, while Nifty 50 fell around 96 points to 22,617, as seen at 9.30 am.
IndiGo, Kotak Mahindra Bank. Reliance Industries (RIL), Sun Pharma, Adani Ports and ICICI Bank were the top losers on Sensex, falling more 1-2%. Bucking the trend, Zudio-[parent Trent, Tech Mahindra, Titan, Infosys and Power Grid shares gained 1-4%.
Around 1,702 stocks declined on NSE, while 1,036 advanced and 85 remained unchanged. Nifty Oil & Gas was among the top sectoral losers, falling more than 1.3%. Bucking the trend, Nifty PSU Bank gained more than 1%. India Vix, meanwhile, jumped nearly 4%.
Trump’s threats raise concerns over Iran-US war escalations
Trump on Sunday claimed that the US will massively escalate its strikes on Iran on Tuesday in case the country doesn’t open the Strait of Hormuz, the critical waterway for the passage of oil and other trade. In a strongly-worded post on Truth Social, the US President wrote, “Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!! Open the F****n’ Strait, you crazy bastards, or you’ll be living in Hell – JUST WATCH! Praise be to Allah.”
In another interview, he added that negotiations were still ongoing and a deal could be reached before the deadline. He said there is a good chance for the conclusion of the deal soon, but in case Tehran fails in doing so, he will “blow up everything over there”. Notably, Trump has repeatedly claimed that the US-administration has been engaging in talks with the top leaders of Iran, a claim that has been repeatedly denied by the latter.
Meanwhile, Iran’s Parliament Speaker Mohammad-Bagher Ghalibaf warned that Washington risks being dragged into a “living HELL” after Trump’s expletive-laden threat targeting Iran’s infrastructure. “Your reckless moves are dragging the United States into a living HELL for every single family, and our whole region is going to burn because you insist on following Netanyahu’s commands. Make no mistake: You won’t gain anything through war crimes. The only real solution is respecting the rights of the Iranian people and ending this dangerous game,” he said in a post on X.
Oil prices above $110/barrel
Trump’s fresh threats to Iran raised worries over further escalations in the oil-rich Middle East, pushing oil prices higher. Brent crude futures gained nearly 1% to trade at $110 per barrel. WTI Crude futures, meanwhile, were hovering around $111.5 per barrel.
Oil prices have seen a significant surge since the outbreak of the war at the end of February this year. Oil prices crossed the crucial $100 mark in March after the closure of the Strait of Hormuz, marking the first time since Russia’s invasion of Ukraine in 2022
Rupee
Rupee opened 0.1% higher at 93 against the US dollar on Monday, compared to the previous closing level of 93.10. The Indian currency has recorded sharp gains recently after the RBI’s latest measures to curb rupee speculation left traders anticipating a glut of onshore dollar sales spurred by the unwinding of positions.
RBI on Wednesday stepped up its efforts to support the currency by barring banks from offering rupee non-deliverable forwards to resident and non-resident clients and preventing companies from rebooking cancelled forward contracts.
FII selloff continues
Despite markets recording gains over the past two sessions, the massive selling streak of foreign investors continued to weigh on investor sentiment. FIIs remained net sellers of Indian equities for the 23rd consecutive session, selling shares worth nearly Rs 9,931 crore on Thursday, according to data on NSE. While this does not reflect today’s activity, sustained outflows in recent sessions have weighed on investor sentiment.
Global markets
Global markets remained mixed as investors analysed the impact of prolonged war and Trump’s threats. Despite worries, Japan’s Nikkei rose more than 1% while South Korea’s Kospi gained around 0.65%.
Wall Street and other markets remained closed on Friday on account of Good Friday. On Thursday, the Dow Jones Industrial Average fell 0.13%, the S&P 500 gained 0.11%, and the Nasdaq Composite rose 0.18%. Dow Jones futures are currently almost flat.
What lies ahead?
With uncertainty over the West Asia conflict looming large, VK Vijayakumar, Chief Investment Strategist at Geojit Investments, expects the market to continue to be volatile, responding to potential good and bad news. “The potential for further escalation of the war is high in the next few days. The market will be keenly watching the response of crude prices to war-related events. If, by any chance, the Hormuz Strait is opened, the market will respond positively even if the conflict continues,” he said.
“Meanwhile, there are some important trends in the market from which investors can benefit. The IT segment has firmed up despite overall market weakness. There is a short-term trade in IT since the Q4 results will be better than expectations and the segment will benefit from the depreciation in the rupee. Similarly, there is an opportunity for long-term investors in banking stocks which are attractively valued. The sharp correction in prices in banking, particularly in private sector banks, is only due to the sustained FII selling. The fundamentals of the sector are strong and leading indicators suggest healthy deposit and credit growth. Patient investors will be rewarded,” he added.
Technical view
Anand James, Chief Market Strategist at Geojit Investments, said that Nifty during its two-day gaining streak was heading towards 24,400, but until that hurdle is cleared, more dips should be expected. “Be warned that prospects of 21900-21600 will rise, if 22525 gives away, but such a collapse is less expected today,” he further said.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)