Nifty 50 and Sensex Suffer Significant Losses Amidst Israel-Palestine War

Nifty 50 and Sensex Suffer Significant Losses Amidst Israel-Palestine War

Nifty 50 and Sensex Suffer Significant Losses Amidst Israel-Palestine War

Nifty 50 and Sensex Suffer Significant Losses Amidst Israel-Palestine War

Nifty 50 and Sensex Suffer Significant Losses Amidst Israel-Palestine War

The Nifty 50 and Sensex, India’s key equity indices, experienced notable losses on Monday, bringing an end to their two-day winning streak. Investor sentiment was adversely affected by the ongoing Israel-Palestine conflict, which created uncertainty and spooked the market.

Israel’s Declaration of War and Its Impact on Markets

The trigger for the downturn was Israel’s declaration of war against Hamas following a surprise attack on Saturday by Hamas fighters that breached the border from Gaza. This attack resulted in the tragic loss of nearly 1,000 lives and left several others wounded. The conflict raised concerns among investors and led to a decline in market sentiment.

Rise in Global Crude Oil Prices

Furthermore, the Israel-Palestine conflict had a direct impact on global crude oil prices. The uncertainty and tensions associated with the military clashes between Israel and Hamas led to a surge in global crude oil prices. Brent Crude prices increased by over $3 per barrel, trading near the $87 per barrel mark during Monday’s trading.

Performance of Nifty 50 and Sensex

Nifty 50 opened the trading day at 19,539.45, down from its previous close at 19,653.50, and experienced a 0.90% decline to reach a low of 19,480.50. Similarly, Sensex opened at 65,560.07, down from its previous close at 65,995.63, and fell 0.85% to reach a low of 65,434.61. The day concluded with Nifty 50 closing at 19,512.35, down 141 points or 0.72%, and Sensex closing at 65,512.39, with a loss of 483 points or 0.73%.

Impact on Market Capitalization

The market capitalization of firms listed on the Bombay Stock Exchange (BSE) witnessed a decline, dropping from approximately ₹319.9 lakh crore in the previous session to nearly ₹316 lakh crore. This decline resulted in investors collectively losing around ₹3.9 lakh crore in a single trading session.

Expert Opinions and Sectoral Performance

Market experts shared their insights on the situation, with concerns about the potential for a prolonged war to disrupt international crude oil prices and contribute to inflation. Sectoral indices such as Nifty PSU Bank, media, consumer durables, metal, financial services, Nifty Bank, oil & gas, private bank, and auto experienced significant declines.

Technical Analysis and Support Levels

Technical analysts suggested that the Nifty’s immediate resistance zone is around the 50-day Simple Moving Average (SMA) at 19,605, while support zones are at 19,480 and 19,390. Investors may view any dips as potential buying opportunities.

The ongoing Israel-Palestine conflict has introduced a degree of uncertainty into the market, causing investors to reassess their positions and portfolio strategies. The situation remains fluid, and market participants are closely monitoring geopolitical developments for potential impacts on global markets.