Sensex and Nifty retreat from record highs as middle east tensions escalate
PTC News Desk: Benchmark stock market indices experienced a decline near record high levels, driven by escalating geopolitical concerns in the Middle East. At approximately 9:16 AM, the S&P BSE Sensex fell by 107.07 points, trading at 84,821.54, while the NSE Nifty50 decreased by 23.50 points to reach 25,915.55.
Despite this dip in the major indices, most broader market indices managed to register gains as volatility remained low during early trading hours.
Sector Performance: Mixed Results
Sectoral indices displayed mixed results, with the Nifty Bank, Nifty Financial Services, and Nifty IT sectors declining. Conversely, the Nifty Metal and Nifty Realty indices experienced gains, highlighting a divergence in sector performance.
Among the top gainers on the Nifty50, JSW Steel, Hindalco, Tata Steel, Power Grid, and Hero MotoCorp stood out. In contrast, the leading losers included Hindustan Unilever (HUL), Infosys, Wipro, Cipla, and HCLTech, reflecting the ongoing volatility in the market.
Geopolitical Concerns Impacting Market Sentiment
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, emphasized the importance of monitoring two significant trends affecting the market. He noted that serious global geopolitical tensions, particularly in the Middle East, are worsening. Recent Israeli strikes in Lebanon have resulted in numerous casualties, raising concerns among investors.
“The price of crude oil has seen a slight increase, while gold prices and the volatility index are rising, reflecting growing anxiety in the market. Nevertheless, the overall market remains resilient, and the underlying sentiment continues to be bullish,” Dr. Vijayakumar stated. He advised investors to make informed decisions based on these geopolitical developments.
Focus on Quality and Investor Awareness
Dr. Vijayakumar further pointed out that there is an increasing preference for quality and fair value among Indian investors, as demonstrated by the sustained rise in the Bank Nifty for eight consecutive sessions. He indicated that the return of Foreign Institutional Investors (FIIs) to the market in September is likely to support the recovery of frontline banking stocks.
Additionally, he highlighted a recent warning from SEBI that revealed 93% of individual traders are losing money in the Futures and Options (F&O) market. “This is a serious concern. While systematic investors are achieving good returns, the majority of individual traders are facing losses. It is essential for individuals to take responsibility for preserving and growing their hard-earned money. The sooner individual traders recognize this, the better it will be for their financial futures,” he concluded.