Market Meltdown: Sensex Dives 800 Points As Middle East Tensions Soar; Nifty Below 22,300

Market Meltdown: Sensex Dives 800 Points As Middle East Tensions Soar; Nifty Below 22,300

The major casualties were the midcap and smallcap indices due to their rich valuation and expectation of moderation in earnings growth in Q4FY24.

IANSUpdated: Monday, April 15, 2024, 04:55 PM IST
article-image
Indices End Day In Red | Image: Wikipedia (Representative)

The Sensex plunged more than 800 points on Monday amid growing tensions in the Middle East.

While the Sensex fell 845 points, or 1.14 per cent, to end at 73,399.78, the Nifty closed at 22,272.50, down 247 points or 1.1 per cent, on Monday. Samir Bahl, CEO (Investment Banking) at Anand Rathi Advisors, said the escalation in the potential conflict between Iran and Israel is a serious development that will likely impact oil pricing adversely.

"The Indian markets will be pressured over the short term as well. However, the Indian economy's strong fundamentals and growth trajectory remain firmly in place over the long term," Bahl said.

Vinod Nair, Head of Research at Geojit Financial Services, said geopolitical tensions and higher-than-expected US inflation impacted investor sentiment and dragged the indices to a lower note.

The major casualties were the midcap and smallcap indices due to their rich valuation and expectation of moderation in earnings growth in Q4FY24.

On the other hand, the European market opened on a positive note while oil prices inched lower as market participants expected that the diplomatic efforts were likely to de-escalate tensions in the Middle East, he said. Rupak De, Senior Technical Analyst at LKP Securities, said the Nifty recently dipped below a crucial moving average, following a breakdown in consolidation.

Additionally, the Relative Strength Index (RSI) indicates a bearish crossover. Short-term sentiment appears bearish, although a significant decline isn't anticipated at present. 

RECENT STORIES

Sony Network Boss NP Singh To Step Down After 25 Years At Helm

Sony Network Boss NP Singh To Step Down After 25 Years At Helm

Wheat Procurement crosses last year's figure, comfortable to Meet Demand, Says Food Ministry

Wheat Procurement crosses last year's figure, comfortable to Meet Demand, Says Food Ministry

Power Packed: Poco F6 Launched in India

Power Packed: Poco F6 Launched in India

DD Kisan To Launch Two AI Anchors Who Can Speak 50 Languages

DD Kisan To Launch Two AI Anchors Who Can Speak 50 Languages

RBI Announces A Mammoth ₹2.11 Lakh Crore Dividend; Where Does This Money Come From?

RBI Announces A Mammoth ₹2.11 Lakh Crore Dividend; Where Does This Money Come From?