Market Update: Indian Indices Dip Amid Global Tensions

16 Apr 2024 , 01:32 PM

On Tuesday, Indian benchmark indices experienced losses, influenced by negative global cues amidst escalating tensions in the Middle East. At the time of reporting, Sensex was down by 559.66 points (0.76%) at 72,840.12, and Nifty declined by 143.10 points (0.64%) to 22,129.40.

Market activity showed 2,183 shares rising, 992 falling, and 80 remaining unchanged. Notable sectors such as Oil & Gas, Consumer Durables, FMCG, Auto, and Pharma witnessed gains, while the IT index faced the most significant decline, down by 1.60%.

Bank, Financial Services, and Healthcare indices also experienced losses. However, the broader market performed better than the benchmarks, with the BSE SmallCap index rising by 0.71% and the BSE MidCap index by 0.18%.

Among the Nifty 50 stocks, 16 were in the green, while two traded flat. Eicher Motors, ONGC, BPCL, Titan, and Dr. Reddy’s were top gainers, while LTIMindtree, IndusInd Bank, Infosys, Bajaj Finserv, and Bajaj Finance were top losers.

Only six of the 30 stocks on the BSE Sensex registered gains, with Titan, HUL, Nestle India, HDFC Bank, Mahindra & Mahindra, and Maruti Suzuki India showing positive movement. Conversely, Infosys, IndusInd Bank, Bajaj Finserv, Bajaj Finance, and SBI were the major decliners.

Foreign institutional investors (FIIs) sold shares worth ₹3,268 Crore, while domestic institutional investors (DIIs) bought stocks worth ₹4,762.93 Crore on April 15, according to provisional data from the NSE.

Asian markets experienced a downturn while the dollar surged to its highest point in over five months on Tuesday. This was driven by robust U.S. retail sales figures for March, which bolstered the belief that the Federal Reserve won’t rush to reduce interest rates this year.

Meanwhile, geopolitical tensions in the Middle East contributed to a cautious market atmosphere, leading to increases in gold and oil prices. Additionally, China’s first-quarter GDP growth of 5.3% exceeded analysts’ predictions, providing some relief to policymakers. However, other indicators released for March, such as property investment, retail sales, and industrial output, indicated ongoing weakness in demand, which dampened investor confidence.

In line with these developments, Chinese stocks declined, following the broader market trend, with the blue-chip index dropping by 1%. Similarly, Hong Kong’s Hang Seng Index experienced a 2% slide.

The negative sentiment extended to other Asian stock exchanges, with MSCI’s broadest index of Asia-Pacific shares outside Japan plummeting by over 2% to reach a two-month low of 518.03.

Expectations for a gloomy market atmosphere persisted in Europe, as reflected in the decline of Eurostoxx 50 futures by 1.30%, German DAX futures by 1.15%, and FTSE futures by 1.28%.

The downward trend continued in the U.S., where stocks closed notably lower on Monday due to an increase in Treasury yields, which raised concerns amid escalating tensions between Iran and Israel. E-mini futures for the S&P 500 fell by 0.14%.

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