Stock market plunges amid escalating Iran-Israel tensions; Sensex- Nifty record steep declines

Mumbai (Maharashtra) [India], April 19 (ANI): In a tumultuous day of trading, the Indian stock market nosedived into negative territory, succumbing to the escalating tensions between Iran and Israel.
The Sensex plunged by 591.21 points, opening at 71,898.32, while the Nifty plummeted by 183.55 points, commencing trading at 21,812.30.
The market sentiment was grim as only six out of the Nifty companies advanced, while a staggering 44 witnessed declines.
Among the Nifty firms, notable gainers included ONGC, Apollo Hospital, Cipla, ITC, and Dr. Reddy, while BPCL, HDFC Life, Bajaj Auto, Infosys, and Coal India were the prominent losers.
Oil prices surged nearly 4 per cent amid concerns of further escalation in tensions between Israel and Iran.
Varun Aggarwal, founder and managing director, Profit Idea, said, "The Nifty 50 index experienced high volatility and closed the day lower by 152 points below the 22,000 mark. Although the index remained below the critical moving average of 21-EMA, a bullish harami pattern emerged on the hourly chart, hinting at a potential bullish reversal in the near term. Additionally, a bullish divergence was observed on the hourly chart."
Amid weak global cues, the domestic equity market opened lower on Friday.
Asian markets traded lower, while the US stock market ended mixed following hawkish comments from US Federal Reserve officials and strong economic data suggesting a reluctance to cut interest rates in the near future.
Aggarwal said, "Market expectations for a rate cut in June have diminished to 15.2 per cent, with July standing at 41.5 per cent, down from 48.4 per cent a week ago. Reports of explosions in Iran, Syria, and Iraq heightened risk sentiment, leading to a selloff in oil prices and a retreat to the dollar."
US equity futures fell, while Japanese stocks declined around 2 per cent. Haven assets rallied, with Treasury yields falling and an index of dollar strength advancing.
Economic data showed subdued US jobless claims and a stronger-than-expected Philadelphia Fed factory index. However, concerns over inflation resurfaced, dampening expectations for rate cuts in 2024.
Emerging market currencies declined, and gold advanced amid growing geopolitical risks. Israel received its first-ever sovereign downgrade from S&P Global Ratings due to heightened regional geopolitical risks.
As tensions between Israel and Iran continue to escalate, investors remain on edge, with the possibility of further market volatility looming on the horizon. (ANI)