09-Oct-2023
2 mins read
The Indian stock market bore the brunt of the escalating tensions in the Middle East this week. With both the benchmark indices, Sensex and Nifty, experiencing significant declines, investors have become wary, resulting in a retreat from several key sectors. In this article, we explore the multifaceted reasons behind this slump, the major market movers, and the broader global context.
The Middle-East Crisis: How It Affected Indian Stocks
Sensex and Nifty’s Performance:
- Sensex: Declined by 483.24 points or 0.73%, settling at 65,512.39.
- Nifty: Declined by 141.15 points or 0.72%, ending at 19,512.35.
The Israel-Hamas conflict has stirred uncertainty in the global market arena, with investors in India trading cautiously. Consequently, there was a notable offloading of stocks, primarily in finance, utility, and energy sectors.
Top Gainers and Losers:
Major Decliners:
- Mahindra & Mahindra: -2.05%
- Bajaj Finance, Tata Steel, SBI, Asian Paints, Kotak Mahindra Bank, and Titan also registered significant losses.
Defying the Downward Trend:
- HCL Technologies: +1.02%
- TCS: +0.47%
- Hindustan Unilever: +0.32%
While the majority of stocks were in the red, IT and FMCG majors showed resilience, registering gains amid the downturn.
The Global Market Scene
Asian markets showed mixed sentiments. Here’s a quick look:
| Market | Performance |
| Hang Seng | 0.19% |
| Shanghai Composite Index | -0.41% |
| Taiwan T SEC 50 Index | 0.28% |
The European front also mirrored mixed sentiments
| Market | Performance |
| DAX | -0.50% |
| CAC 40 | -0.27% |
| FTSE 100 | 0.26% |
Brent Crude’s Surge
With the Middle-East being a crucial region for oil, the conflict has had direct implications on global oil prices. Brent crude, the global oil benchmark, saw a sharp spike of 3.32% to settle at $87.39 a barrel.
Investor’s Approach and FIIs Movement
Investors are also on their toes with impending macroeconomic data:
- Industrial production and manufacturing data for August due on October 12.
- Inflation rate for September and WPI data set to be announced on October 13.
Further adding to the cautious approach is the Reserve Bank of India’s recent decision to leave its key interest rate unchanged, signalling a tighter liquidity scenario. This decision came on the heels of FIIs offloading equities worth ₹90.29 crore.