Kamal Ghorui
Stock market today: After a relief rally on Thursday, Nifty50 and BSE Sensex opened in red on Friday on weak global cues amid escalating Middle East tensions. While Nifty50 went below 24,650, BSE Sensex was down over 500 points. At 9:18 AM, Nifty50 was trading at 24,610.90, down 155 points or 0.63%. BSE Sensex was at 79,489.17, down 527 points or 0.66%.Analysts say that investors will continue to track developments in West Asia, global energy price movements and overall international risk sentiment for further direction. Rising geopolitical tensions have raised concerns about energy prices, inflation pressures and the potential impact on monetary policy.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “As the war continues to rage and uncertainty looms large, markets will be influenced by the crude prices. It is important to understand that even though crude has spiked by about 16% since the war began this is not among the major spikes in crude compared to earlier geopolitical crises which impacted crude. This is a reflection of the potential huge supply of oil available in the global market. Once the West Asian crisis deescalates, crude prices will dip sharply and markets will bounce back. Therefore, crude price will continue to influence the market in the near-term. So long as Brent crude moves around $85 levels, the market is unlikely to be impacted. On the other hand, if Brent price spikes above $90 and moves towards $100, globally markets will be impacted. Therefore, watch out for crude prices.”US stocks closed lower on Thursday as the conflict in the Middle East entered its sixth day. Asian markets also weakened on Friday, placing regional equities on course for their sharpest weekly decline in six years. In currency markets, the US dollar remained broadly steady during early Asian trading on Friday and was set for its strongest weekly gain in more than a year. The escalating geopolitical tensions increased demand for safe-haven assets, supporting the greenback.Foreign portfolio investors continued to pare exposure to Indian equities, with net sales of Rs 3,752 crore on Thursday. Domestic institutional investors provided some support to the market as they remained net buyers, purchasing shares worth Rs 5,153 crore.(Disclaimer: Recommendations and views on the 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)
