Stock market today (AI image)
Stock Market Today: The Sensex and Nifty opened in the red on Monday amid weak global signals as the closure of the Strait of Hormuz sent oil prices higher. While the Nifty50 fell below 24,300, the BSE Sensex fell more than 200 points. At 9:16 am, Nifty50 was trading at 24,290.00, down 64 points or 0.26%.
The BSE Sensex stood at 78,245.84, down 248 points or 0.32%.A key factor to watch is the next round of diplomatic talks between the United States and Iran, especially as the April 22 ceasefire deadline approaches.“As the drama of de-escalation and escalation in conflict in West Asia continues, the market will remain volatile in the near term,” says Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
With Iran hardening its stance once again, closing the Strait of Hormuz and threatening to respond to the US seizure of an Iranian ship that “violates the US blockade,” there is potential for conflict to flare up when the ceasefire expires on April 22.
However, market signals do not reflect renewed anxiety and escalating conflict. Although Brent crude oil has risen back to $95 levels from below $90 on Friday, there is no panic in the crude oil market.
“A big trend in the market right now is the outperformance of the broader market. The Nifty Midcap and Nifty Smallcap indices have returned to pre-war levels. This is in contrast to the Nifty which is still 4% below pre-war levels. The market is responding positively to good results from the broader market space. Even with uncertainty over tensions in West Asia impacting the market, certain stocks will respond to good results, especially when results exceed expectations.”
“At the start of the new week, oil prices rose, the US dollar rebounded from recent lows, and global stocks showed mixed movement as tensions in the Middle East disrupted shipping flows in and out of the Gulf. However, market participants continued to anticipate a potential solution.Early trends on Monday pointed to a decline in US stock futures, with S&P 500 futures down 0.6% by mid-morning in Tokyo. In Asia, Hang Seng futures rose 1.2%, Nikkei 225 futures rose 0.3%, Japan’s Topix rose 0.5%, while Australia’s S&P/ASX 200 remained largely unchanged.
In Europe, Euro Stoxx 50 futures fell by 1.2%.Crude oil prices rebounded more than 6% on Monday after falling more than 9% on Friday, as reports emerged that the Strait of Hormuz had been closed again following mutual accusations by the United States and Iran of ceasefire violations involving attacks on ships over the weekend.Gold prices fell more than 1% on Monday, as a stronger dollar weighed on the metal, while uncertainty surrounding negotiations between the United States and Iran pushed oil prices higher and raised concerns about inflation.(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)
