Stock Market: The effect of increasing tension between Iran and Israel is now clearly visible on the global markets. A weak start is being seen in the domestic markets also today. GIFT Nifty is trading with a fall of about 120 points. US markets saw a 1% decline yesterday, and Asian markets also remained weak. However, the Chinese market has registered a sharp rise of 10% during early trading today, as the Chinese government may announce relief measures for economic reforms today.
The market had made a positive start in the first trading session of the week on Monday, but selling pressure remained dominant during the recovery. Nifty broke several important levels in yesterday’s session. From the peak of 26,277 on September 27, Nifty has so far registered a fall of 1,500 points. Investors have suffered a loss of around ₹23 lakh crore in the last three sessions. During this period, 47 out of 50 Nifty stocks have declined by 1% to 10%.
At one time on Monday, Nifty had gone below the level of 24,700 in intraday. However, there was a slight recovery from the day’s lows and Nifty managed to close at 24,800 levels. Selling pressure on HDFC Bank continued for the sixth consecutive day, leading to a decline of ₹ 1 lakh crore in the market capitalization of this stock.
Signals from global markets: US markets closed down by about 1% on Monday due to reduced expectations of a major cut in interest rates and increasing tension in the Middle East. Concern has increased in the money market due to increase in employment figures and bond yields. The American 10-year bond yield has reached 4.012%. The dollar index is at 102.17, while the price of gold has reached $2,643 an ounce. Crude oil prices also continued to rise, and Brent crude reached $ 81 per barrel. Concerns about rising inflation due to expensive crude are re-emerging as oil prices have increased by more than 12% in the last 5 days.