Indian shares fell sharply on Monday in the wake of heightened Middle East tensions and uncertainty over the timing and pace of Fed rate cuts.
Inflation and interest rate worries returned to the fore after Iran on Saturday night unleashed a retaliatory strike against Israel, sending a volley of more than 300 uncrewed drones and missiles toward targets.
However, Israel successfully navigated the attack due to advanced warning systems combined with strong missile defense in and outside its borders.
The benchmark S&P BSE Sensex fell 845.12 points, or 1.14 percent, to 73,399.78 as markets anxiously waited for Israel’s response to the Iranian attack.
United States (US) President Joe Biden has reportedly told his Israeli counterpart that Washington will not take part in a counterstrike against Tehran.
Russia also urged all sides to “show restraint” and said regional states should solve the existing problems with political and diplomatic means.
Iran says the matter is concluded for now, but vowed to strike back with greater force if Israel retaliates.
The broader NSE Nifty index plunged 246.90 points, or 1.1 percent, to 22.272.50, with banks, financials and IT stocks leading losses.
Bajaj FinServ, Bajaj Finance, ICICI Bank, Wipro and Shriram Finance gave up 2-3 percent.
Oil & gas explorer ONGC topped the gainers list to rally nearly 6 percent while Hindalco added 2.4 percent as aluminum and nickel futures jumped to multi-month highs following fresh sanctions by the U.S. and U.K. targeting Russian metals.
Market Analysis
Sensex, Nifty Slump On Escalating Middle East Tensions
2024-04-15 10:38:14
