Due to increasing tension in West Asia, Sensex fell by 845 points, Nifty also fell by 247 points.
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Mumbai . Local stock markets continued to fall for the second consecutive trading session on Monday and BSE Sensex fell further by 845 points. Investor sentiment was affected by rising tensions in West Asia and weak trend in global markets. The 30-share BSE Sensex closed at a two-week low of 73,399.78, down 845.12 points, or 1.14 percent. At one time during trading it had fallen to 929.74 points.
National Stock Exchange’s Nifty also closed at 22,272.50 points with a decline of 246.90 points or 1.10 percent. Earlier, on Friday, Sensex had lost 793.25 points and Nifty had lost 234.40 points. Overall, in two trading sessions, Sensex has fallen by 1,638 points or 2.19 percent and Nifty has fallen by 481 points or 2.13 percent. In the broader market, BSE Smallcap index fell 1.54 per cent and Midcap fell 1.50 per cent. According to analysts, the market remained in losses due to capital withdrawal by foreign institutional investors (FIIs) and inflation in the US rising higher than expected.
Apart from this, increasing tensions in West Asia and proposed changes in India-Mauritius tax treaty also had a negative impact on the market. Among Sensex stocks, Wipro, ICICI Bank, Bajaj Finserv, Bajaj Finance, Tata Motors, Larsen & Toubro, Tech Mahindra and HDFC Bank were major losers. On the other hand, shares of Nestle, Maruti and Bharti Airtel were in profit. Sector wise, there was a decline of 2.12 percent in services, 1.81 percent in financial services, 1.58 percent in IT, 1.55 percent in banks and 1.37 percent in utilities. On the other hand, energy and oil and gas shares remained in profit. At the end of trading, a total of 2,991 shares declined, while 913 advanced and 145 remained unchanged.
In other markets of Asia, Japan’s Nikkei, South Korea’s Kospi and Hong Kong’s Hang Seng were in loss while China’s Shanghai Composite was in profit. There was a mixed trend in early trade in major markets of Europe. American market Wall Street was in loss on Friday. Vinod Nair, Head of Research, Geojit Financial Services, said, “Increasing political tensions globally and inflation rate in the US being higher than expected affected investor sentiment. The indices of medium and small companies fell mainly due to overvaluation and estimates of decline in companies’ earnings in the fourth quarter of the financial year 2023-24.
He said, “On the other hand, there was a positive trend in the European market in early trade while oil prices softened. Market participants believe that ongoing efforts at the diplomatic level are expected to end tensions in West Asia. Meanwhile, global oil benchmark Brent crude slipped 1.04 percent to $ 89.51 per barrel. Foreign institutional investors sold shares worth Rs 8,027 crore on Friday. According to official data released on Monday, wholesale inflation in the country rose marginally to 0.53 per cent in March from 0.20 per cent in February due to increase in prices of vegetables, potatoes, onions and crude oil.
According to official data released on Friday, retail inflation declined to 4.85 percent in March, which is a five-month low. At the same time, due to better performance of the mining sector, the growth in industrial production in February 2024 was 5.7 percent, which is a four-month high. Suman Banerjee, CIO of hedge fund Hedonova, said the BSE Sensex and NSE Nifty declined due to rising geopolitical tensions in West Asia. The growing tensions between Iran and Israel led to damage in key areas. The Income Tax Department on Friday said the rules and guidelines in the amended double taxation avoidance treaty between India and Mauritius are yet to be approved and notified. The two countries have signed an agreement to amend the Double Taxation Avoidance Treaty (DTAA) on March 7. To decide this, a provision has been made for ‘Principal Purpose Test’ (PPT). This will ensure whether a foreign investor is eligible to claim treaty benefits or not.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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