However, certain stocks were trading in the green, defying the bloodbath in the market. Shares of ITD Cementation were up by 17.5% trading at Rs 632.15, while the shares of Infibeam Avenues, Sarda Energy and Minerals and Petronet LNG were up by over 5%.
Angel One shares were also trading 4% higher at Rs 2,704.80 while those of Jubilant Ingrevia stood at Rs 810.20, higher by 4.5%.
Meanwhile, shares of BSE, Just Dial, Tips Music and BASF India were trading higher between 3-4%.
Additionally, amid the meltdown, 222 stocks were trading at their 52-week high. Britannia, Coforge, Hindalco, JSW Steel, Polycab and Zee Media are a few among the lot.
Here are the key reasons for today’s decline:
Iran-Israel Conflict: Rising tensions between Iran and Israel weighed on Indian markets, with reports of Israeli soldiers killed in clashes and Iran launching missile attacks on Tel Aviv, prompting fears of a broader conflict.
Surge in Oil Prices: Concerns over supply disruptions from the Middle East pushed Brent crude above $75 and WTI past $72, adding pressure on India, a major oil importer, as higher prices increase import costs.
SEBI Tightens F&O Rules: SEBI’s new regulations in the futures and options segment, such as limiting weekly expiries and increasing contract sizes, have dampened retail sentiment, potentially reducing trading volumes and adding uncertainty.
Chinese Market Recovery: The recent Chinese economic stimulus has led to a strong rebound in Chinese stocks, raising fears of capital outflows from Indian markets as investors seek better opportunities in China.
“War is something, historically we have seen whenever war escalations have happened initial reactions have been negative, knee-jerk reactions have happened, but these dips have been bought into,” says Rahul Sharma of JM Financial Services.
“Technically speaking, Nifty has broken a crucial support of 25,665 today. The next one is also broken as we speak, which was around 25,400. Now, these are levels after levels. The next one that comes is around the 25,000 mark. So, the best thing to do at this point in time is hold on to your cash investments, do not be in a hurry to book losses in them,” Sharma added.
The fall in the S&P BSE Sensex recorded its third biggest decline this year in today’s session. In the current year so far, it has fallen by 1,000 points or more on seven other occasions.
However, today’s fall is the third biggest fall of 2024 as the 30-stock index hit the day’s low of 82,449.01. The market capitalisation of BSE listed companies eroded by nearly Rs 10 lakh crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
