Indian Equities Suffer Amid Global Uncertainty and Middle East Tensions

Indian Equities Suffer Amid Global Uncertainty and Middle East Tensions

VoM News Desk | October 17, 2023 | 10:20 AM IST | Breaking News | Follow on Google News

Indian Equities Suffer Amid Global Uncertainty and Middle East Tensions .

Indian Equities Suffer Amid Global Uncertainty and Middle East Tensions

As the global financial landscape faces uncertainty, Indian equities markets experienced a downward trend on Monday. The backdrop of weakening global markets and escalating crude oil prices, driven by tensions in the Middle East, contributed to this decline.

Investor sentiments were notably dampened due to ongoing geopolitical conflicts, most prominently the Israel-Palestine conflict, and persistent Foreign Institutional Investors (FII) selling.

Foreign institutional investors (FIIs) played a substantial role in shaping the market’s performance on Monday. FIIs sold stocks of Indian companies worth ₹7,607.25 crore while buying stocks for ₹7,013.59 crore. This resulted in a net outflow of ₹593.66 crore, as per NSE data. On the other hand, domestic institutional investors (DIIs) bought equities worth ₹6,737.67 crore and offloaded shares worth ₹5,553.43 crore, leading to a net inflow of ₹1,184.24 crore, as reported by the exchange data.

Stock Market Performance

The 30-share BSE Sensex faced a decline of 115.81 points, or 0.17%, ultimately closing at 66,166.93. During the trading day, it encountered a low of 66,039.38, declining by 243.36 points or 0.36%. The NSE Nifty also saw a decrease of 19.30 points, or 0.10%, settling at 19,731.75.

The market saw mixed performance among major companies. Nestle, Tata Consultancy Services, IndusInd Bank, Asian Paints, Bharti Airtel, Tech Mahindra, UltraTech Cement, Kotak Mahindra Bank, and Hindustan Unilever were among the major losers. On the flip side, Tata Steel, JSW Steel, HCL Technologies, Axis Bank, Power Grid, and Mahindra & Mahindra registered gains.

In the broader market, the BSE smallcap gauge saw a rise of 0.34%, and the midcap index gained 0.25%. Sectoral indices experienced variations, with telecommunication falling by 0.74%, realty by 0.39%, tech by 0.32%, FMCG by 0.28%, services by 0.17%, bankex by 0.11%, and IT by 0.10%.

Rupee’s Struggle and Forex Reserves

The Indian rupee faced challenges and reached its lifetime closing low on Monday. This was attributed to the surge in crude oil prices and the weakness observed in other Asian currencies, putting pressure on the local unit.

At the interbank foreign exchange market, the Indian rupee opened at 83.25 against the US dollar and traded in the range of 83.24 to 83.28 throughout the day. Ultimately, the rupee closed at 83.2775 against the US dollar, with minimal change compared to its previous close at 83.2625.

Adding to these financial challenges, India’s forex reserves reported a further decrease of $2.166 billion, amounting to $584.742 billion for the week ending October 6, as stated by the Reserve Bank of India (RBI) on Friday.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.