Share Market: Sharp fall in the stock market on the first day of the week, Sensex fell by 702 points; Bad condition of auto sector

Share Market Highlights: The Indian stock market closed in the red on Monday, the first trading day of the week, due to weak global signals amid the ongoing tension in the Middle East. During this period, BSE Sensex, the main benchmark of the domestic market, closed at 76,847.57 with a decline of 702.68 points or 0.91 percent. Whereas NSE Nifty50 fell by 207.95 points or 0.86 percent and closed at the level of 23,842.65.

In intraday trade, the Sensex fell 1,682 points or 2.1 per cent to a low of 75,868.32, while the Nifty fell 495 points or 2 per cent to a low of 23,555.60. In the broader markets, the Nifty Midcap 100 index fell 0.57 per cent and the Nifty Smallcap 100 index fell 0.46 per cent.

Situation of sectoral index on Monday

At the same time, if seen sector wise, a decline of 2.09 percent was recorded in Nifty Auto, 1.29 percent in Nifty FMCG and 1.16 percent in Nifty IT. Apart from this, a fall of 0.73 per cent was seen in Nifty PSU Bank, 0.55 per cent in Nifty Bank, 0.63 per cent in Nifty Financial Services, 0.35 per cent in Nifty Media, 0.29 per cent in Nifty Pharma and 0.22 per cent in Nifty Metal.

In the Nifty50, shares of Eicher Motors, Maruti Suzuki, Bajaj Finance, Reliance, Indigo, Jio Financial Services, HDFC Bank, TCS and Shriram Finance recorded the biggest decline of 5-2 per cent, while shares of HDFC Life, Adani Enterprises, ICICI Bank, NTPC, TMPV, Coal India and ONGC saw a rise.

Reason for decline in stock market

This decline in the domestic market US-Iran ceasefire The collapse of talks came as crude oil prices surged, raising concerns that the Middle East conflict could drag on longer than anticipated. US-Iran talks in Islamabad over the weekend yielded no concrete results, casting doubt on the fragile two-week ceasefire.

Experts’ opinion regarding the market

According to market experts, the market is now coming out of the recovery phase and entering a more cautious and risk-sensitive state. The rising volatility and stress across almost all sectors shows that investors are now taking macro risks seriously. Due to high crude oil prices, weak rupee and geopolitical uncertainty, concerns about companies’ earnings and margins have increased.

Also read: There will be havoc in the market! US blockade in Hormuz creates stir in the world, know what will be the impact on India?

What next in the domestic stock market?

Market experts say that momentum indicators are still showing a mild positive trend. The RSI is around 52, which is above neutral and indicates buying at lower levels. However, strong bullishness will be considered only if the index remains above 24,000. Till then the market may trade in a limited range with a negative bias.