Domestic equity markets lost considerable ground on Monday as flaring tensions in the Middle East, where latest reports suggest that Israeli army has proposed likely retaliatory measures to its government against Iran, dampened sentiment.
The S&P BSE Sensex fell 845 points, or 1.14 per cent, to end at 73,400 levels, while the Nifty50 closed at 22,273, down 247 points or 1.1 per cent.
27 of the 30 Sensex stocks and 44 of the 50 Nifty stocks nursed losses today led by Shriram Finance, Bajaj Finserv, L&T, Wipro, ICICI Bank, Divis Labs, SBI Life, and Tech M.
In the broader markets, the BSE MidCap and SmallCap indices dropped 1.5 per cent each. Overall, the volatility index, India VIX, surged over 8 per cent today.
Among sectors, the Nifty PSU Bank index shed 1.8 per cent, followed by up to 1.7 per cent decline in the Nifty Private Bank, Bank, and IT indices.
Samir Bahl, CEO – Investment Banking, Anand Rathi Advisors, said: “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. However, the Indian economy’s strong fundamentals and growth trajectory remain firmly in place over the long term.”
Global Cues
Markets in Asia-Pacific were on a downtrend this morning as investors weighed impact of Iran’s attack on Israel over the weekend. Iran launched more than 300 missiles and drones against military targets in Israel.
Japan’s Nikkei 225 fell 1 percent, while Australia’s S&P 200 index slipped 0.6 percent, and South Korea’s Kospi slid over 1 percent.
On the commodity front, oil prices were little changed, with Brent Crude above $90 per barrel and WTI Crude above $85 per barrel.
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