West Asia crisis, US bond yields pull market down; Sensex tumbles 600 points, Nifty down 200 points


The Indian stock market witnessed a sharp decline today, with the Sensex skidding 600 points and the Nifty dropping by 200 points. The market fall is attributed to a variety of factors, including the Israel-Hamas conflict and fluctuations in US bond yieldsn.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said, “The Israel-Hamas conflict will continue to weigh on markets in the near-term. Positive news like the decline in US bond yields and weakening crude can help the market revive, but it may not sustain given the uncertainty surrounding the West Asian conflict. Investors may take a cautious approach till clarity emerges on the geopolitical situation.”

Santosh Meena, Head of Research, Swastika Investmart Ltd said, “The market appears to be entering a consolidation phase in preparation for the pre-election rally. Historically, Indian markets tend to initiate their pre-election upswings approximately six months prior to the election outcome. As such, it is reasonable to anticipate the beginning of a pre-election rally around the time of Diwali.

In terms of market behaviour, a further correction could be expected, with the Nifty potentially testing its 200-day moving average (DMA) at around 18,800. This could present an attractive buying opportunity for investors looking to participate in the anticipated pre-election rally. It’s important for investors to remain composed and avoid panicking during these market fluctuations. Instead, they should be prepared with a list of high-quality stocks to capitalise on this dip.”

The Indian stock market’s trajectory in the coming weeks will likely be influenced by a combination of global geopolitical events and domestic economic factors.

The top gainers on the BSE are Nestle India, Tata Steel, State Bank of India and Asian Paints. The top losers are NTPC Ltd, Infosys, Bharti Airtel, ITC and Tata Motors


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