Stock Market Today: Sensex and Nifty opened in the red on Monday due to weak global cues as closure of the Strait of Hormuz pushed oil prices higher. While Nifty 50 dropped below 24,300, BSE Sensex fell by over 200 points. At 9:16 am Nifty50 was trading at 24,290.00, down 64 points or 0.26%. BSE Sensex was down 248 points or 0.32% at 78,245.84.An important factor to watch will be the next round of diplomatic talks between the US and Iran, especially as the April 22 ceasefire deadline approaches.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd., says, “The market will remain volatile in the near term as the escalation drama in the West Asian conflict continues. The conflict is likely to flare up when the ceasefire expires on April 22, with Iran again hardening its position, closing the Strait of Hormuz and threatening to retaliate if the US seizes an Iranian ship ‘that violates the US blockade’. However, market signals do not reflect new concerns and flare-ups of conflict. Even though Brent crude has increased from below $90 to $95 on Friday, there is no panic in the crude oil market. “A significant trend in the market now is the outperformance of the broader market. The Nifty Midcap and Nifty Smallcap indices are back to pre-war levels. This is in contrast to the Nifty which is still 4% below pre-war levels. The market is reacting positively to good results from the broader market sector. Even as the uncertainty over West Asia tensions is weighing on the market, particular stocks will react to good results, especially when the results Will be better than expectations.“At the start of the new week, oil prices climbed, the US dollar bounced back from recent lows, and global equities were mixed as tensions in the Middle East disrupted shipping flows in and out of the Gulf. Nevertheless, market participants remained hopeful of a possible solution.Early trends on Monday indicated a decline in US equity futures, with S&P 500 futures down 0.6% by mid-morning in Tokyo. In Asia, Hang Seng futures rose 1.2%, Nikkei 225 futures rose 0.3%, Japan’s Topix rose 0.5%, while Australia’s S&P/ASX 200 was largely unchanged. In Europe, Euro Stoxx 50 futures slipped 1.2%.Crude oil prices rose more than 6% on Monday after falling more than 9% on Friday as reports emerged that the Strait of Hormuz was again closed by the US and Iran after mutual accusations of ceasefire violations involving attacks on ships over the weekend.Gold prices fell more than 1% on Monday as a stronger dollar weighed on the metal, while uncertainty over US-Iran talks lifted oil prices and reignited concerns about inflation.(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)
