Mumbai, June 2. The Indian stock market opened in the red on Tuesday, the second trading day of the week, due to negative global signals amid the ongoing conflicts in West Asia. Meanwhile, the domestic market’s main benchmark BSE Sensex opened 322 points or 0.43 per cent lower at 73,945.20 due to signs of disruption in peace talks between the US and Iran and fears of a weak monsoon. At the same time, NSE Nifty50 fell by 153.45 points or 0.65 percent and opened at 23,229.15.
At the time of writing (around 9:18 am), Nifty50 was down 134.30 points or 0.57 percent at 23,259.70, while Sensex was down 437.97 points or 0.59 percent at 73,829.37. In the broader market, Nifty Midcap and Nifty Smallcap indices were trading 0.95 per cent and 0.96 per cent lower, respectively. At the same time, if seen sector wise, most of the sectoral indices were seen trading in the red mark in the early trade. Nifty Auto, Nifty Realty and Nifty Chemicals recorded a decline of up to 1 percent each. Apart from this, pressure was also seen on shares of private banks, PSU banks, cement and media sectors.
However, the IT sector provided some relief to the market. Nifty IT index was seen trading with a strength of about 2 percent, due to which investors remained interested in technology stocks. Nifty Metal also performed better. In the Nifty50 index, shares of Bajaj Finance, Bajaj Finserv, Max Health, Eternal, HDFC Life, PowerGrid and Shriram Finance were the biggest losers. Whereas the shares of Infosys, TCS, Tech Mahindra, HCL Tech and Hindalco saw the highest rise.
At the same time, the India VIX index, which measures market volatility, fell by more than 2 percent to the level of 16, which shows the caution of investors. Talking about the commodity market, the price of Brent crude in the international market fell by 0.67 percent to $ 94.34 per barrel. At the same time, American West Texas Intermediate (WTI) crude was seen trading at $ 91.46 per barrel, down 0.75 percent. According to market experts, ongoing tensions in West Asia, high crude oil prices and fears of a weak monsoon are affecting investor confidence.
Experts say that according to the latest estimate released by the Indian Meteorological Department (IMD), this year the monsoon is likely to be only 90 percent of normal. If this happens, it may affect agricultural production, rural demand and inflation. He said that the resolution of the West Asia crisis and the fall in crude oil prices could prove to be positive for the market, but due to no concrete progress in this direction till now, investors remain worried.
Experts believe that in the current volatile environment, investors should focus on strong fundamental companies instead of panicking. Also, it is important to maintain an investment strategy as per your risk appetite and financial goals. The Meteorological Department has predicted that this time the monsoon will be the weakest in the last 11 years. This has increased concerns about the agricultural sector and rural economy. This is the reason why stocks related to agriculture and rural demand are also under pressure.
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