Key benchmark indices traded higher on Friday, on course to snap their 4-day losing run despite a flare-up in the Middle East conflict. Earlier, it had denied confirmation of Israel’s attack on its soil. This, coupled with short-covering by foreign investors, helped benchmark indices end sharply higher on Friday.
The S&P BSE Sensex sank 672 points in the early hours of Friday’s session amid reports of three explosions in Iran, likely launched by Israel. The index, however, bounced back in the afternoon session to end 599 points, or 0.83 per cent, higher at 73,088 levels.
On the NSE, the Nifty50 hit an intraday low of 21,778 before closing at 22,147, up 151 points or 0.7 per cent.
Stock Market View: Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
Reports of the feared escalation of the Iran-Israel tensions have spooked the markets. Distinct weakness in Asian markets and sharp cuts in US futures reflect heightened nervousness in equity markets.
There are headwinds from the bond markets, too. The sharp spike in US bond yields triggered big FII selling which touched Rs 4260 crores yesterday. More FII selling can be expected in the near-term putting pressure on largecaps.
Investors may wait for clarity to emerge on the geopolitical front. Uncertainty is very high.
Global Cues
Asian shares and bond yields plummeted, while the dollar, yen, oil, and gold surged, driven by reports of a significant escalation in hostilities in the Middle East.MSCI’s broadest index of Asia-Pacific shares plunged by over 2%, and U.S. stock futures indicated a decline of 1.3%, reacting to media reports suggesting Israeli missiles had targeted a site in Iran.
US stocks closed near the unchanged mark on Thursday, as investors sifted through the latest corporate earnings, while economic data and comments from Federal Reserve officials suggested the central bank was unlikely to cut interest rates in the near future.
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