After showing volatility in the last two sessions, the Nifty slipped on weakness on Monday. On October 9 the benchmark index saw a sharp break following its global; The stock market suffered a decline due to the impact of the Israel-Palestine war.
On the daily chart Nifty has found strong resistance below its 9 & 21 EMA, placed at 19,600 & 19,650 levels.
India stock market status
The domestic stock market suffered a significant decline today, primarily due to heightened tensions in the Middle East, leading to negative sentiment in global markets.
A sudden rise in oil prices, along with concerns about rising inflation, were key contributors to the market’s fall, adding to investor concerns.
The Nifty index fell below 19,550 points, indicating a significant drop in market confidence.
Investors are engaged in portfolio restructuring, particularly in mid- and small-cap stocks, reacting to higher valuations in the sector, resulting in consolidation activity.
The financials and consumer discretionary sectors were under pressure, with concerns arising about the impact on earnings if inflation continues to rise. In contrast, the IT sector showed resilience during this period of market turbulence.
Global stock market
Dow Jones futures fell 150 points, marking a negative start for the US stock market today.
European and Asian markets ended mixed on Monday, as investors weighed the effects of a military conflict in the Middle East and the associated rise in oil prices.
The Israeli-Palestinian conflict escalated over the weekend, with the Islamist group Hamas carrying out attacks on Israeli cities. These attacks led to casualties and kidnappings of Israelis, turning the situation into an all-out war. In response, Israel launched airstrikes on various targets in Gaza. This new conflict, combined with the ongoing Ukrainian war, has sent oil prices soaring. Rising oil prices will not only affect most European and Asian stock markets but also have the potential to contribute to inflationary pressures. This will prompt central banks to tighten monetary policies and burden consumers with additional costs.
US stocks rallied on Friday after the release of stronger-than-expected US jobs data and a pop in Treasury yields. The Labor Department said nonfarm payrolls rose by 336,000 jobs in September, while data for August was revised upward, adding 227,000 jobs instead of the 187,000 previously reported. The unemployment rate was unchanged at an 18-month high of 3.8%.
Spotlight stocks
Inox Green Energy Services saw a 1.86 percent drop in its share value following a strategic move announcement. The company signed a timetable for complete divestment of its 100 per cent stake in Nani Virani Wind Energy Pvt Ltd. This special purpose vehicle represents a 50 MW operational wind farm located in Gujarat, commissioned in May 2023. The divestiture is in line with the company’s strategic decision to achieve a net debt-free status.
Metropolis Healthcare saw a significant rise in its share price, rising 2.1 per cent following its strong performance in Q2FY24. The company posted double-digit annual growth in startups for its core business and marked an expansion in operating margins compared to the previous quarter. Metropolis Healthcare released its Q2FY24 results on October 6, demonstrating its strong financial position and operational efficiency.
PB Fintech, the company behind Policybazaar, saw a slight decline in its share price, ending below 1 percent. The decline comes as Softbank firms SVF Python II (Cayman) and SVF India Holdings (Cayman) sold 11.4 million shares in the insurance player on Friday, October 6th.
Nifty 50 Top Gainers stocks
TREDDY▲ 1.1
HCLTECH▲ 0.9
DATAGENSUM▲ 0.6
ONGC▲ 0.4
INDUNILVAR▲ 0.3
Nifty 50 Top losers stocks
Adaniports▼ -5.1
HDFCLIFE▼ -2.7
Heromotoco▼ -2.5
M&M▼ -2.2
TATASTEEL▼ -2.0
