The Indian stock markets on Tuesday saw profit-booking between India and Pakistan amid growing geopolitical tensions and ended on a negative note.
Today, at the end of the trading session, the BSE Sensex was below 155.77 points or 0.19 percent at 80,641.07. While the Nifty in the National Stock Exchange (NSE) was 0.33 percent at the Nifty 50 81.55 points or 0.33 percent 24,379.60.
The volatility index has significantly increased in the last few weeks, indicating increased geopolitical tension between India and Pakistan, which is 3.58 at 19 today.
The domestic market is getting consolidated in recent sessions after a strong recovery by vigilant feelings amidst the India-Pakistan border tension. The increase in weak income for the current quarter has further affected the market. Small and mid-cap stocks have weakened compared to benchmark indices. ,
He said that investors are closely monitoring India’s bilateral trade talks with the US.
“In addition, speculation around the American Federal Reserve is attracting attention, as no rate is expected to be cut in the near period, affecting global trends,” Nair said.
Observing today’s session, VLA Ambala, co-founder of the stock market, said today, “The mutual tariff influenced the US markets, weighed in the Indian market as well, which led to the pressure of market flight on both the Nifty 50 and the banking index.”
In today’s trading, the second half of the session was largely a range-bound with silent activity.
The sectoral performance with the only advantage of the automobile sector was widely negative, while PSU banks, realty, media, oil and gas, and financial services took care of sales pressure.
“Market sentiments were cautious as growing geopolitical tension between India and Pakistan, motivating investors to adopt a defensive approach, receiving support from selected pockets of the market,” said beautiful kewat, technical and derivative analyst, Eyesika Institutional Equality.
The banking index was under more pressure due to potential concerns by the government to prevent its stake in PSU banks.
As a result, the PSU sector declined by about 2.5 percent, reflecting negative emotions. In particular, the Nifty Index has provided about 12 percent of the benefits in recent weeks, which is an unusually strong uptrend for such a short time.
As the week progresses, the Indian stock market will closely monitor the Foreign Portfolio Investment (FPI) movement, which recently replaced net buyers, as well as the development on the India-US bilateral trade deal, and Q4 of major listed companies for the latest signals. (AI)
