Markets tumble in early trade amid tensions in Middle East
The Hindu
The 30-share BSE Sensex plunged 407.19 points or 0.62% to 65,588.44 points in early trade. The Nifty declined 142.70 points or 0.72% to 19,510.80 points.
Benchmark equity indices tumbled in early trade on October 9 as escalating tensions in Middle East triggered a risk-off in the market.
Market analysts said investors preferred to remain on the sidelines and refrained from taking big risks as the Israel-Hamas conflict has introduced a huge uncertainty for the markets The 30-share BSE Sensex plunged 407.19 points or 0.62% to 65,588.44 points in early trade. The Nifty declined 142.70 points or 0.72% to 19,510.80 points.
State Bank of India, Tata Steel, Titan, IndusInd Bank and Asian Paints were among the major laggards. On the other hand IT majors HCL Technologies, Tech Mahindra, TCS, Wipro and Infosys, Hindustan Unilever and Sun Pharma defied the broader market trend and were trading in the positive territory.
The BSE benchmark had climbed 364.06 points or 0.55% to settle at 65,995.63 points on Friday. The Nifty had advanced 107.75 points or 0.55% to end at 19,653.50.
"The Israel-Hamas conflict has introduced a huge uncertainty for the markets. Nobody knows how this war is going to evolve," V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
He said that even though it is unlikely to cause major disruption in oil supplies at present, the situation will change if Iran, a major Hamas supporter, is drawn into the war. "That can disrupt oil supplies causing a spike in crude, which can trigger a risk-off in the market. This is a time to be cautious," he added.
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