Mumbai: 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.
–IANS