Market shaken by huge FII selling of ₹5,616 crore and US-Iran war crisis, Nifty may open 170 points lower today

Amidst the increasing geopolitical tension on the global front and the deepening crisis of the US-Iran war, today i.e. Thursday is going to prove to be a very challenging day for the Indian stock market. There are clear indications that the domestic stock market (Sensex-Nifty) will start with huge weakness today. All-round selling in markets around the world, skyrocketing crude oil prices and concerns about ever-increasing inflation have given investors sleepless nights. Market experts believe that today the Indian stock market will have a direct and deep impact on the developments in US-Iran talks, movement of crude oil, aggressive selling by foreign institutional investors (FIIs) and the upcoming monetary policy of the Reserve Bank of India (RBI). Market closed under pressure for the second consecutive day, decline in Sensex-Nifty. Earlier on Wednesday too, strong pressure was seen in the domestic stock market for the second consecutive day. In yesterday’s trading session, Bombay Stock Exchange index Sensex closed at 74,346.17 with a decline of 303.67 points or 0.41%. At the same time, Nifty 50 of National Stock Exchange also fell by 77.95 points (0.33%) and closed at the level of 23,405.60. According to Siddharth Khemka, Head of Retail Research, Motilal Oswal Financial Services, this continuous decline in the market clearly shows that our domestic market has now become very sensitive to global and geo-political crises. GIFT Nifty gave indications of crash, there was selling in Asian markets too. The signals coming from the global markets on Thursday morning are going to scare the Indian investors. On the Singapore Exchange, Gift Nifty was seen trading at around 23,346 levels, which is about 170 points below the previous closing level of Nifty futures. It is clear that today Dalal Street is going to start with a red mark. On the other hand, there is heavy selling in Asian markets since this morning. Japan’s benchmark index Nikkei 225 fell nearly 1.4%, while the Topix index fell more than 0.9%. Apart from this, Kospi of South Korea has also fallen by about 2% and very weak signals are being received from the markets of Hong Kong. Heavy fall in American Wall Street, tech giants like Nvidia and Apple collapsed. American stock markets also witnessed severe selling on Wednesday night. The major American index Dow Jones closed with a huge fall of 620 points. At the same time, a big decline of 0.74% was recorded in S&P 500 and 0.89% in tech-heavy Nasdaq. Due to global uncertainty, there was heavy selling in the shares of the world’s leading tech companies, in which the shares of giant companies like Nvidia, Microsoft, Apple and AMD closed under pressure. All eyes are on US-Iran talks, hope from Donald Trump’s statement. At present, the eyes of the whole world and financial markets are on the ongoing tension between America and Iran. Iran’s Foreign Minister has recently given a statement that no concrete or major progress has been made so far regarding ending the war and restoring peace. However, on the other hand, US President Donald Trump has given a positive signal and said that an important and major agreement can be reached between the two countries by the end of this week. After this statement, some hope has definitely arisen among the investors. FIIs sold shares worth ₹ 5,616 crore, people ran towards safe investments. According to market data, foreign institutional investors (FIIs) took out net cash worth ₹ 5,616.56 crore from the Indian stock market on Wednesday, which increased the pressure on the market. However, amid this heavy selling, domestic institutional investors (DIIs) tried to save the market from a complete crash by purchasing shares worth ₹5,740.89 crore. In this environment of global crisis, investors have withdrawn money from the stock market and turned to safe investment options, due to which gold has increased by 0.4% in the international market and reached a record level of $ 4,450 an ounce. Talking about crude oil, Brent crude is trading at $ 97.14 per barrel with a slight decline of 0.69% and American WTI crude is trading at $ 95.4 per barrel.