Stock Market Today: Nifty 50 and BSE Sensex fell in early trade on Friday as US-Iran war tensions and crude oil prices continued to weigh on sentiment. While Nifty 50 dropped below 23,100, BSE Sensex was down over 800 points. At 9:16 am Nifty50 was trading at 23,045.55, down 261 points or 1.12%. BSE Sensex was down 835 points or 1% at 74,438.18.Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd, says, “The market’s intermittent reaction to news and events regarding the war is likely to continue in the near term. A rise in Brent crude to around $108 levels will again trigger another round of risk-off in the Indian market. The correction in the market since the start of the war has brought Nifty valuations to reasonable levels. Nifty now trades at around 19 times Which is 22.4 times less than the average of the last 10 years. But if India’s macros take a hit due to this energy crisis, valuations could decline again given the likely impact on earnings growth in FY27.“If the war ends, crude cools down and gas availability returns to normal then the Indian economy is strong enough to absorb the shock. But if the war drags on, crude remains high for several months and gas availability constraints continue, the stress on India’s macros will be significant and the market will underwrite it. In short, everything depends on how long the war will last. The market expects that since a prolonged war is in nobody’s interest No, so it may end soon. America itself is now looking for an exit strategy. “Market improvements and rising retail prices of petroleum products could put pressure on the US regime to defuse the conflict.”Global signals remained weak. US markets fell sharply, with the Nasdaq Composite falling more than 2% and entering correction territory, while the S&P 500 and Dow Jones Industrial Average fell more than 1%. Investors turned to safe-haven assets amid concerns about a possible escalation in the US-Israel conflict with Iran, which has sent oil prices higher and raised inflation concerns.Weakness on Wall Street was also reflected in Asian markets, as traders remained cautious even after Donald Trump once again extended the deadline for the deal with Iran. However, crude oil prices declined.On the domestic front, foreign institutional investors were net sellers on Wednesday, selling equities worth Rs 1,805.37 crore. In contrast, domestic institutional investors remained net buyers and bought shares worth Rs 5,429.78 crore.(Disclaimer: The recommendations and views given by experts on the stock market, other asset classes or personal finance management are their own. These opinions do not represent the views of The Times of India)
