Operation Sindoor impact on Indian stock market today : Indian equity benchmark indices, Nifty50 and BSE Sensex , plunged in red on Friday after continued escalation of tensions between India and Pakistan. While Nifty50 went below 24,100, BSE Sensex dipped to below 79,500 levels. At 12:48 PM, Nifty50 was trading at 24,015.70, down 258 points or 1.06%. BSE Sensex was at 79,487.81, down 847 points or 1.05%
The top Nifty50 gainers were L&T, Titan Company, Tata Motors, BEL and Hero MotoCorp. The top losers were ICICI Bank, Power Grid, Grasim Inds, UltraTech Cement, and Apollo Hospital.
Indian stock market's reaction to the ongoing India-Pakistan tensions has till now been relatively muted. Pakistan stock market on the other hand has crashed. Experts believe that the Indian stock market's fundamental resilience will continue to work in its favour, despite short term volatility.
The total market value of BSE-listed companies decreased by Rs 4.95 lakh crore, according to an ET report.
Sectoral indices showed negative performance with Nifty Bank, FMCG, Media, Metal, and Realty declining between 1-2%. The broader market indicators Nifty Midcap100 decreased by 1%, whilst Smallcap100 fell 2%. The Volatility Index (India VIX) increased by over 6% to 22.27.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Under normal circumstances, on a day like this, the market would have suffered deep cuts. But this is unlikely due to two reasons. One, the conflict, so far, has demonstrated India’s clear superiority in conventional war fare, and therefore, further escalation of the conflict will inflict huge damage to Pakistan. Two, the market is inherently resilient supported by global and domestic macros. Weak dollar and potentially weakening US and Chinese economies are good for the Indian market. The domestic macros construct is further rendered stronger by the high GDP growth expected this year and the declining interest rate environment. These are the reasons why FIIs have been on a buying spree in the Indian market during the last sixteen trading sessions. Investors should not panic and exit from the market now. Remain invested, monitor the developments and wait for the dust to settle."
Devarsh Vakil, Head of Prime Research at HDFC Securities, stated that Nifty's short-term outlook weakened after closing below its 5-day EMA of 24340. He identified resistance levels between 24340-24500 and support levels at 23978-23800 as markets respond to current geopolitical developments.
Global Markets
Japanese equities surged on Friday, bolstered by the strengthening dollar against the yen, following a trade agreement between the US and Britain that raised expectations for successful negotiations with other nations.
However, the modest scope of the London agreement dampened enthusiasm regarding its potential as a model for other trade deals, particularly ahead of the Sino-US discussions scheduled for Saturday in Switzerland.
Chinese blue-chip shares declined 0.2% at opening, whilst Hong Kong's Hang Seng registered a 0.2% increase.
The Japanese Nikkei and Topix indices rose approximately 1.2%, with the Topix poised to continue its positive performance for an 11th consecutive session, marking its longest upward trend since October 2017. Taiwan's market gained 1%, Australian shares increased 0.4%, whilst MSCI's comprehensive Asia-Pacific shares index outside Japan remained steady.
The Indian rupee depreciated by 30 paise to 85.88 against the US dollar in early trading. The dollar index, measuring the US currency against six major global currencies, showed a slight decrease of 0.03% to 100.6.
The top Nifty50 gainers were L&T, Titan Company, Tata Motors, BEL and Hero MotoCorp. The top losers were ICICI Bank, Power Grid, Grasim Inds, UltraTech Cement, and Apollo Hospital.
Indian stock market's reaction to the ongoing India-Pakistan tensions has till now been relatively muted. Pakistan stock market on the other hand has crashed. Experts believe that the Indian stock market's fundamental resilience will continue to work in its favour, despite short term volatility.
The total market value of BSE-listed companies decreased by Rs 4.95 lakh crore, according to an ET report.
Sectoral indices showed negative performance with Nifty Bank, FMCG, Media, Metal, and Realty declining between 1-2%. The broader market indicators Nifty Midcap100 decreased by 1%, whilst Smallcap100 fell 2%. The Volatility Index (India VIX) increased by over 6% to 22.27.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “Under normal circumstances, on a day like this, the market would have suffered deep cuts. But this is unlikely due to two reasons. One, the conflict, so far, has demonstrated India’s clear superiority in conventional war fare, and therefore, further escalation of the conflict will inflict huge damage to Pakistan. Two, the market is inherently resilient supported by global and domestic macros. Weak dollar and potentially weakening US and Chinese economies are good for the Indian market. The domestic macros construct is further rendered stronger by the high GDP growth expected this year and the declining interest rate environment. These are the reasons why FIIs have been on a buying spree in the Indian market during the last sixteen trading sessions. Investors should not panic and exit from the market now. Remain invested, monitor the developments and wait for the dust to settle."
Devarsh Vakil, Head of Prime Research at HDFC Securities, stated that Nifty's short-term outlook weakened after closing below its 5-day EMA of 24340. He identified resistance levels between 24340-24500 and support levels at 23978-23800 as markets respond to current geopolitical developments.
Global Markets
Japanese equities surged on Friday, bolstered by the strengthening dollar against the yen, following a trade agreement between the US and Britain that raised expectations for successful negotiations with other nations.
However, the modest scope of the London agreement dampened enthusiasm regarding its potential as a model for other trade deals, particularly ahead of the Sino-US discussions scheduled for Saturday in Switzerland.
Chinese blue-chip shares declined 0.2% at opening, whilst Hong Kong's Hang Seng registered a 0.2% increase.
The Japanese Nikkei and Topix indices rose approximately 1.2%, with the Topix poised to continue its positive performance for an 11th consecutive session, marking its longest upward trend since October 2017. Taiwan's market gained 1%, Australian shares increased 0.4%, whilst MSCI's comprehensive Asia-Pacific shares index outside Japan remained steady.
The Indian rupee depreciated by 30 paise to 85.88 against the US dollar in early trading. The dollar index, measuring the US currency against six major global currencies, showed a slight decrease of 0.03% to 100.6.
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