Stock market today (AI image)
Stock Market Crash Today: Both the Nifty50 and BSE Sensex collapsed in opening trade on Wednesday due to escalating tensions in the Middle East and escalating war between the US, Israel and Iran. While the Nifty50 fell below 24,400, the BSE Sensex fell over 1,600 points.
At 9:16 am, the Nifty50 was trading at 24,380.45, down 485 points or 1.95%.
The BSE Sensex stood at 78,594.94, down 1,644 points or 2.05%.Analysts warned that a decisive break below the 24,600 level on the benchmark index could open the door to further decline towards 24,400.“As the war escalates and crude oil prices rise, markets are entering a period of heightened uncertainty,” says Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
No one knows how long this conflict will last and how much destruction it could cause. From the perspective of India, which relies on imports to meet about 85% of its oil needs, the real concern lies in potential inflation and its consequences on economic growth.
From a market perspective, the impact of a potentially widening trade deficit, currency depreciation, higher inflation and possibly lower growth is the real issue. If this fear comes true, corporate profits will be affected. This is the fear in the market. This fear will only be realized if the war continues for a long time. If it ends in, say, 3 to 4 weeks, things will return to normal. ““Experience tells us that panicking and exiting the market during times of uncertainty like these is not the right thing to do.
Markets have an uncanny ability to surprise and overcome all walls of fear. So stay invested and wait patiently. Investors with a high risk appetite and a long investment horizon can use this crisis to buy high-quality stocks. Banking, Pharmaceuticals, Automotive and Defense themes will provide long-term buying opportunities.
” The weakness in domestic stocks reflects global trends. US markets ended lower on Tuesday amid concerns about the duration of the conflict in the Middle East, although major indexes recovered from intraday lows.
Selling was broad across sectors, with materials emerging as the worst performer among the S&P 500 sectors, while the Chicago Mercantile Exchange’s volatility index rose, reflecting growing uncertainty.Asian markets extended losses for the third straight session as oil prices rose, while the conflict in Iran raised fears of renewed global inflationary pressures. The developments prompted traders to reduce their expectations regarding imminent interest rate cuts by the Federal Reserve.In currency markets, the dollar rose to its highest level in three months in early Asian trading on Wednesday. Investors turned away from the euro as tensions in the Middle East increased, raising concerns about a prolonged rise in energy costs.Gold prices rose 1 percent on Wednesday, rebounding from their lowest level in more than a week in the previous session. This rise came after the escalation of US-Israeli air strikes against Iran, which boosted demand for safe haven assets amid increasing geopolitical risks.(Disclaimer: Recommendations, opinions regarding stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times Of India)