Kamal Ghorui
Stock market crash today: Nifty50 and BSE Sensex plunged in opening trade on Monday with oil prices continuing to remain Hugh amid the ongoing US-Iran war. While Nifty50 went below 23,000, BSE Sensex dropped over 1,300 points. At 9:17 AM, Nifty50 was trading at 22,698.55, down 416 points or 1.80%. BSE Sensex was at 73,168.18, down 1,365 points or 1.83%.The near-term outlook remains heavily dependent on incoming economic data, while geopolitical developments in the Middle East and fluctuations in crude oil prices are expected to be the primary external factors shaping market direction.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “With the war in West Asia getting into the fourth week, there is no clarity on when the war will end. Unfortunately, the war is escalating with President Trump giving an ultimatum to Iran to open the Strait of Hormuz in 48 hours. The Iranian president’s response that “ the Strait of Hormuz is open to all except those who violate our soil” has prevented panic in the oil market. However, the uncertainty is huge and markets will be waiting and watching the outcome.“It is important to understand that the huge risk-off globally has impacted all assets including stocks, bonds and precious metals like gold and silver. In fact, the crash in safe haven gold is worse than in equities. There is nothing that investors can do during this crisis characterised by huge uncertainty. If history is any guide, investors should not panic, but keep cool. The sharp depreciation in the rupee will benefit exporters like pharmaceuticals and autos and auto ancillaries. The beaten down IT segment may surprise with a bounce back.”Asian markets opened on a weak footing, with equities declining and oil prices showing sharp volatility at the start of the week. The ongoing conflict, with no clear signs of easing, has added to investor nervousness, while US Treasury yields continued to climb amid an extended selloff in bonds.Wall Street ended sharply lower on Friday, dragged down by declines in major technology stocks such as Nvidia and Microsoft, as the US-Israeli conflict with Iran entered its fourth week. The prolonged tensions have heightened concerns about rising inflation and the likelihood of higher interest rates.Crude oil prices remained largely steady on Monday, as markets balanced the risk of escalating attacks on energy infrastructure by the US and Iran against the potential increase in global supply following Washington’s decision to allow the release of Iranian oil held at sea.On the domestic front, foreign portfolio investors remained net sellers, offloading equities worth Rs 5,518 crore on Friday. In contrast, domestic institutional investors provided some support to the market, emerging as net buyers to the tune of Rs 5,706 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)
