As Israel-Hamas war entered 17th day after its outbreak on 7th October 2023, Indian stock market continue to remain under the grip os bears for fourth straight session during Monday deals. Nifty 50 index opened lower at 19,521 and went on to hit intraday low of 19,404 during Monday deals, losing over 400 points in four straight sessions. BSE Sensex today opened at 65,419 levels and went on to hit intraday low of 65,022 levels, losing over 1400 points in last four sessions. Likewise, Bank Nifty index today opened at 43,822 levels and made intraday low of 43,583 levels, losing around 825 points in last four days.
According to stock market experts, Israel-Hamas war entering 17th day, continuous selling by FIIs, rising crude oil fueling inflation pressure, strong dollar and Q2 results below market estimates are the major five reasons that has been dragging Indian stock market for the last four days.
Israel-Hamas war
“Israel Hamas war has fueled uncertainty among investors as Middle East tension is yet to get any solution despite more than a fortnight of its outbreak. This geopolitical uncertainty has put equity under pressure and hence Indian stock market is under pressure for last four days,” said Arun kejriwal, Founder at Kejriwal Research and Investment Services.
Strong US dollar
“Despite outbreak of the Israel-Palestime conflict, US dollar index has remained above 106 for the last one week. This is despite US Fed’s dovish stance on interest rate hike. This could also be a reason equity markets in Indian feeling the sell off heat,” said Avinash Gorakshkar, Head of Research at Profitmart SEcurities.
Inflation concerns
Avinash Gorakshkar went on to add that dur to the outbreak of Israel-Hamas war, crude oil prices has been rising continuously, which is expected to put pressure on the government exchequers as it imports more than 85 per cent of its oil demand. Hence, rise in inflation is one of the major concern that market is looking at after prolonged Israel-Palestine conflict.
FIIs’ selling
Gorakshkar went on to add that FIIs have been continuously selling in Indian equity market as US dollar has been rising continuoulsy in last few weeks. In such a scenario, they might be shifting their money from emerging markets to otehr assets like gold, bond, currency, etc.
Q2 results 2023 below expectations
“Market has not looking happy from the kind of results leading Indian companies have declared so far. We saw good resutls of ICICI Bank and Kotak mahindra Bank last week, that is yet to get converted into the stock buying interest. Some big companies like DMart have delivered weak quarterly numbers. So, Indian companies have reported Q2 numbers which seems below expectations of the markets,” said Avinash Gorakshkar.
Source Link: Laurus Labs shares tank 11% on weak Q2 earnings, bleak growth outlook by brokerages | Mint