The equity benchmarks Sensex and Nifty faced significant losses, each dropping 1%, primarily due to declines in major stocks like Reliance Industries, HDFC Bank, and ICICI Bank, coupled with rising tensions in the Middle East. In early trading, the BSE Sensex fell by 1,264.2 points to 83,002.09, while the NSE Nifty decreased by 345.3 points to 25,451.60.
Among the 30 firms listed on the Sensex, Tata Motors, Asian Paints, Larsen & Toubro, Axis Bank, Mahindra & Mahindra, and others were notable laggards. Conversely, JSW Steel, Tata Steel, Sun Pharma, and NTPC managed to post gains. Overall, the market capitalization of all listed companies on the BSE dipped by ₹5.63 lakh crore, settling at ₹469.23 lakh crore.
Middle East Tensions
The stock market’s downturn coincided with escalating conflicts between Iran and Israel. Recent Israeli military operations in southern Lebanon resulted in the deaths of eight soldiers, following Iranian missile strikes on Tel Aviv. Israel’s military leadership has warned of potential retaliatory actions.
Crude Oil Prices
In light of the geopolitical unrest, oil prices have surged, raising concerns over supply stability from major oil-producing nations. Brent crude briefly exceeded $75 per barrel, while West Texas Intermediate surpassed $72, with both benchmarks experiencing nearly a 5% increase over the last three days. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that any attack by Israel on Iranian oil installations could lead to a significant spike in crude prices, posing risks for oil-importing nations like India. He advised investors to closely monitor the evolving situation.
Sebi Tightens F&O Measures
In addition to these external factors, the Securities and Exchange Board of India (Sebi) has introduced stricter regulations in the futures and options (F&O) segment. The new rules include limiting weekly expiries to one per exchange and increasing contract sizes, which may lead to reduced trading volumes.
