Global markets rise as West Asia tensions ease; Indian Stocks in loss

Recent easing of tensions in West Asia is positively impacting world markets today. Asian markets are rising, and trade is expected to increase in India. However, there is potential for selling pressure that could push markets lower.

This morning, US futures showed gains, while gold and crude oil prices fell, and the dollar index rose. Israel's targeted attacks on Iran did not hit nuclear facilities or oil refineries, focusing instead on air defense radars and missile production sites. Iran's air defense systems suffered significant losses, with over 100 aircraft involved in the strikes. Analysts suggest that Iran is unlikely to retaliate, particularly given the health issues affecting its Supreme Leader, Ayatollah Khamenei. This situation is contributing to lower crude oil prices and a stronger dollar.

In the derivatives market, the Nifty closed at 24,149 on Friday, rising to 24,215 this morning, indicating a positive start for the Indian market.

Global market update

European markets had mixed results on Friday, with Germany's DAX index seeing slight gains, while other indices recorded minor losses. Last week, European indices fell by around one percent, with notable declines for automaker Mercedes and French liquor company Remy Cointreau due to disappointing earnings reports.

In the US, markets were also mixed. The Dow Jones fell for the fifth consecutive day, closing down 259.96 points (0.61%) at 42,114.36. The S&P 500 decreased slightly by 1.74 points (0.03%) to 5,808.12, while the Nasdaq gained 103.12 points (0.56%), closing at record highs.

The current geopolitical situation and Donald Trump's lead in key states are boosting Indian market sentiment, although lackluster corporate earnings are tempering enthusiasm.

In Asia, markets are up, with Japan's Nikkei index rising 1.80% after the ruling coalition lost the election. South Korea and Australia also saw gains, while Chinese markets opened lower. The Japanese yen fell to 154 yen per dollar.

The Indian market 

The Indian market, which began trading positively on Friday, ultimately ended with significant losses, with the Sensex and Nifty each down nearly one percent, and the Bank Nifty falling around 1.5%. Midcap and smallcap indices dropped over two percent. Only FMCG and healthcare sectors showed resilience, while sectors such as Consumer Durables, Oil & Gas, Metals, PSU Banks, Media, and Autos experienced declines.

Last week, the Sensex lost 2.2% and the Nifty fell by 2.7%. The Sensex closed down 662.87 points (0.83%) at 79,402.29, below the 80,000 mark for the first time since August 13. The Nifty ended down 218.60 points (0.90%) at 24,180.80, while the Bank Nifty closed down 743.70 points (1.44%) at 50,787.45. The mid-cap index dropped 1.90% and the small-cap index fell by 2.20%.

Foreign investors sold a net Rs 3,036.75 crore in the cash market on Friday, bringing total foreign sales for the month to a record Rs 1,00,242.17 crore. Domestic funds and institutions, however, made net purchases of Rs 4,159.29 crore.

Market breadth was negative, with 521 shares advancing and 2,303 shares declining on the NSE. On the BSE, 738 shares rose and 3,215 fell.

Looking ahead, technical analysts suggest the Nifty may test support levels around 24,090 and 24,015, with resistance at 24,370 and 24,455.

Gold falls 

Gold prices fell sharply this morning following a rebound on Friday. The price rose by $12.40 to close at $2,748.70 an ounce on Friday, but this morning fell by $20.70 to $2,728. The Indian price of gold increased by Rs 80 to Rs 58,360 on Friday, climbing further to Rs 58,880 on Saturday.

Silver closed at $33.28 per ounce.

The dollar index rose 0.32 points to 104.26 on Friday and increased to 104.51 this morning. The Indian rupee held steady, with the dollar closing at Rs 84.08.

Crude oil prices saw a significant decline. Brent crude fell from $76.05 on Friday to around $72.72 this morning, while WTI crude is priced at $68.53 and UAE's Murban crude at $75.02.

Market indicators

- Sensex 30: 79,402.29 (-0.83%)
- Nifty50: 24,180.80 (-0.90%)
- Bank Nifty: 50,787.45 (-1.44%)
- Mid Cap 100: 55,277.95 (-1.90%)
- Small Cap 100: 17,847.90 (-2.20%)
- Dow Jones 30: 42,114.40 (-0.61%)
- S&P 500: 5,808.12 (-0.03%)
- Nasdaq: 18,518.61 (+0.56%)
- Dollar ($): ₹84.08 (unchanged)
- Dollar index: 104.26 (+0.32)
- Gold (oz): $2,748.70 (+$12.40)
- Gold (Pavan): ₹58,360 (+₹80; Saturday ₹58,880 +₹520)
- Crude (Brent): $76.05 (+$1.67)