Mumbai (Maharashtra) [India], February 20 (ANI): Indian fairness markets opened below strain on Friday, with benchmark indices Nifty 50 and BSE Sensex declining amid rising geopolitical tensions between the US and Iran, larger crude oil costs, and cautious investor sentiment.
The Nifty 50 index opened at 25,406.55, down -47.80 factors or (-0.19 per cent), whereas the BSE Sensex additionally opened decrease at 82,272.49, down -225.65 factors or -0.27 per cent.
Market consultants attributed the weak spot to world uncertainty and rising geopolitical dangers.
Ajay Bagga, Banking and Market Expert, advised ANI, ‘Risk-off sentiment dominates because of Geopolitical tensions (Iran). Fragile investor confidence after US market weak spot. Macro backdrop US cycle cooling however resilient. Eurozone stabilizing. China nonetheless going through property stress however displaying managed stabilization as Lunar yr vacation spending will give a clue subsequent week on the power of the Chinese shopper’.
He additional added, ‘Iran escalation danger excessive, Supreme Leader Khamenei rejected US calls for to halt uranium enrichment. Trump has warned Tehran of ‘traumatic penalties’ if no deal inside a month. US navy buildup within the area raises danger of weekend escalation. Arab allies not eager on risking Iranian retaliation’.
Rising crude oil costs additionally weighed on investor sentiment. Brent crude costs crossed the USD 70 mark and are at present buying and selling at USD 71.82 per barrel amid tensions between the US and Iran.
Precious metals remained agency, reflecting cautious sentiment. Gold costs held sturdy at Rs 155277 per 10 gram for twenty-four karat, whereas silver costs rose by 1.14 per cent to Rs 244113 per kg.
Broad market indices additionally witnessed declines on the NSE. The Nifty 100 was down by 0.18 per cent, the Nifty Smallcap 100 declined by 0.15 per cent, and the Nifty Midcap index fell by 0.24 per cent.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments, stated, ‘The sharp spike in Brent crude to USD 72 displays rising concern and uncertainty in markets. The persevering with weak spot in IT shares is one other dampener for the market. Amidst the numerous crises, the power of the Indian financial system and the restoration in company earnings as mirrored in Q3 numbers, are positives for the market. If, hopefully, the US-Iran standoff will get resolved within the coming days, the market will bounce again. Therefore, buyers could wait and watch the unfolding developments in West Asia’.
Other Asian markets additionally mirrored combined traits. Japan’s Nikkei 225 index declined by 1 per cent to the 56845 stage, whereas Hong Kong’s Hang Seng index fell by 0.63 per cent to 26536. Taiwan’s markets remained closed. Singapore’s Straits Time index rose marginally by 0.15 per cent to 5007, whereas South Korea’s market witnessed a robust rally with a leap of greater than 1 per cent to 5762.
US markets additionally closed decrease on Thursday, including to world warning. The S&P 500 declined by 0.28 per cent to 6861, whereas the Nasdaq fell by 0.36 per cent to 22672.72.
So the rising geopolitical tensions, elevated crude oil costs, and world market weak spot proceed to weigh on investor sentiment, retaining the outlook cautious within the close to time period. (ANI)