The Indian stock market opened with a decline on Friday, Sensex fell by more than 800 points and Nifty remained near 23,100. Investor sentiment was affected by weakness in Asian and American markets and global uncertainty.
Stock Market: The Indian stock market opened with losses on Friday, March 27, amid weak global cues. The Sensex fell by more than 800 points in early trade, while the Nifty 50 index was seen trading near 23,100. This pressure was already building in the market, as GIFT Nifty Futures were down 197 points at 23,081 at 7 am, which was clearly indicating that the market could open weak.
It is noteworthy that the market was closed on Thursday on the occasion of Ram Navami, whereas before that on Wednesday the market was seen strong and Nifty 50 and Sensex closed with a gain of more than 1.5 percent. In such a situation, Friday’s fall was not surprising for investors, but is believed to be the effect of global signals.
pressure from global markets
An atmosphere of weakness was seen in Asian markets since Friday morning. Japan’s Nikkei 225 index fell about 0.94 percent, while South Korea’s Kospi index was seen trading down about 2.7 percent. This decline is directly the result of weakness in the US markets, which affected the sentiment of Asian investors.
American markets also closed with a decline on Thursday. The S&P 500 fell about 1.74 percent, while the Dow Jones Industrial Average was down 1.01 percent. Whereas Nasdaq Composite saw a huge decline of 2.38 percent. Selling pressure in tech stocks is believed to be the main reason for this decline.
There remains uncertainty among investors globally, especially regarding the ongoing situation between America and Iran. Due to lack of clarity regarding the ceasefire, alertness has increased in the markets.
Impact of America-Iran tension
A major reason for instability in international markets is the ongoing tension between America and Iran. Although US President Donald Trump has postponed for 10 days a possible attack on Iran’s energy infrastructure, the situation is not completely clear.
He also said that talks with Iran are moving in the right direction. Along with this, information came to light that Iran has allowed 10 oil tankers to pass through the Strait of Hormuz. However, no official confirmation has been made from Iran in this matter.
Such geopolitical uncertainty has a direct impact on stock markets, as investors avoid taking risks and turn to safer investment options.
Fall in crude oil prices
Crude oil prices also softened in the Asian trading session. The price of Brent crude fell by about 1.26 percent to $ 106.65 per barrel. This fall in oil prices can be a relief sign for the market, as it can reduce the pressure on inflation. However, at present investors are paying more attention not only to oil prices but also to the global political situation.
If oil prices continue to remain soft, it could be a positive sign for the Indian economy, as India is a major oil importing country.
Movement in IPO market
Activity is also being seen in the primary market on Friday. The IPO of Amiac Technologies has opened for subscription today. The company aims to raise Rs 31.75 crore through this issue.
Apart from this, today is the last day to invest in the IPOs of Aamir Chand Jagdish Kumar (Exports), Powerika and Sai Parenterals. By the second day, these issues were subscribed 1.55 times, 0.03 times and 0.42 times respectively. Investors’ interest in the IPO market remains intact, but the effect of current market instability can be seen here also.
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