Early Times Report
JAMMU, Mar 15: Indian equity markets ended the week with sharp losses amid escalating geopolitical tensions in the Middle East, rising crude oil prices and persistent foreign fund outflows. For the next week, starting March 16, analysts expect volatility to continue when markets reopen on Monday, with the 23,000 level emerging as a key support for the Nifty 50.
The benchmark Nifty 50 closed at 23,151.10 for the week ended March 13, falling 5.31%, while the BSE Sensex declined 5.52% to settle at 74,563.92. Banking stocks witnessed deeper losses, with the Bank Nifty falling nearly 7% to end around 53,758.
However, the GIFT Nifty, or Nifty futures, closed 91 points higher to close at 23,294 on Friday, indicating a mild gap-up on Monday, March 16, if the Iran war situation remains stable, after a steep decline on Friday.
However, the GIFT Nifty, or Nifty futures, closed 91 points higher to close at 23,294 on Friday, indicating a mild gap-up on Monday, March 16, if the Iran war situation remains stable, after a steep decline on Friday.
Geopolitical tensions trigger market sell-off
Ponmudi R, CEO of Enrich Money, said global geopolitical risks and sharp volatility in crude oil prices significantly weakened investor sentiment during the week.
"Indian equity markets remained under sustained selling pressure and endured a volatile and predominantly corrective week, as escalating geopolitical tensions in the Middle East and sharp volatility in crude oil prices continued to dampen investor sentiment," he said.
The escalation followed coordinated US-Israel strikes on Iranian targets, which triggered retaliatory missile and drone attacks by Iran against US military bases and allied locations in the region.
According to Ponmudi, concerns intensified as the Strait of Hormuz, a key global energy corridor through which nearly one-fifth of the world's oil supply passes, faced disruptions.
"Heightened security risks and a surge in war-risk insurance premiums led several shipping operators to suspend transit through the corridor, effectively constraining tanker movement and raising fears of prolonged supply disruptions," he said. |
