US Iran War: The growing tensions between the US and Iran have caused disarray in international financial markets, with Gift Nifty predicting a weak opening in the Indian stock market. Higher oil prices, political instability, and risk aversion among investors have resulted in increased volatility in Dalal Street.
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Gift Nifty Predicts Gap-Down Opening
According to Gift Nifty, the index was trading at about 175 points below Thursday’s closing price for Nifty 50. Investors have taken a risk-averse stance prior to Friday’s market opening because of weak global cues and the existing political tensions.
US-Iran War Weighs on Investor Sentiment
The growing tension between the US and Iran is the top reason for this bearishness. It is the expectation that any continued tensions may lead to disruption in the supply of oil from these regions, causing a rise in the price of crude oil. This would put additional pressure on inflation in coupressureke India, which imports oil.
Nifty and Sensex Extend Their Decline
Indian stock indices closed down on Thursday with a negative trend for the fourth consecutive day. While the Nifty 50 index closed at 23,869, Sensex index fell by 363 points to close at 76,391. Bank Nifty index also saw large-scale selling and closed at 56,592.
Technical Levels to Watch For
Market analysts say that 23,800 level serves as an important support for the Nifty 50. Its breach could bring more selling pressures, with 23,000 being the next support level. It would be prudent to wait until sentiments turn positive.
Sectors Under Pressure
Stocks from real estate, banking, financials, and capital markets were among the worst-performing sectors on Thursday. On the other hand, stocks from media and automobiles did better than the broader market even in unfavorable sentiments.
