In the preceding session, Indian equity indices sustained losses, with the Sensex closing down by 845.12 points, or 1.14 percent, at 73,399.78, and the Nifty slipping by 246.90 points, or 1.10 percent, to 22,272.50. As per the pivot point calculator, immediate support for the Nifty 50 is anticipated at the 22,256 level, with resistance likely at 22,288.
The GIFT Nifty, specifically, mirrors this negative sentiment, with a projected decline of 168.50 points or 0.75 percent. Meanwhile, Nifty futures hover around the 22,184 mark, indicating a cautious approach by traders.
International markets also witnessed downturns, with US stocks experiencing significant declines amidst rising Treasury yields and escalating geopolitical tensions between Iran and Israel. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite all closed lower, reflecting the broader apprehension.
Looking to Asian markets, continued declines are observed, driven by anxieties surrounding Israel's response to Iran's recent military actions. Attention now turns to China's first-quarter GDP data, with expectations of a 4.6 percent growth rate, along with industrial production and retail sales figures.
Additionally, fluctuations are noted in gold and oil prices, with gold slipping due to strengthened dollar and Treasury yields following positive US retail sales data. Conversely, oil prices rose amid escalating Middle Eastern tensions, following Israel's announcement of a forthcoming response to Iran's recent attacks.
Factors Behind Today's Stock Market Fall
The Indian equity market witnessed a significant downturn today, as multiple factors combined to instigate a widespread sell-off, leaving investors grappling with uncertainty.
Tension in the Middle East: Heightened tensions in the Middle East played a pivotal role in triggering the sell-off in the Indian equity market. The escalation of tensions in the region raised concerns about geopolitical stability, prompting investors to offload their positions in equities.
Global Market Turmoil: The turmoil in the Middle East reverberated across global markets, with major indices experiencing declines. The US stock market ended lower, and major Asian markets, including Nikkei, Hang Seng, and Kospi, traded under pressure, signaling a broader sentiment of unease among investors.
Rise in US Dollar Rates: Adding to the market's woes, the US dollar surged to near 106 levels and hit a 34-year high against the Japanese Yen. This surge in the US dollar rates led to an increase in US Treasury yields, prompting selling in global equity markets, including India.
Crude Oil Price Surge: Furthermore, crude oil prices soared to a six-month high in both domestic and international markets. The substantial increase in fuel prices observed in March and April 2024 compounded concerns among investors, adding to the bearish sentiment in the market.
Disappointing US Retail Sales: The release of disappointing US retail sales figures further fueled speculation and anxiety among investors. The stronger-than-expected US retail sales numbers raised fears of inflation, casting doubt on the possibility of a US Fed rate cut in the near term. Consequently, investors began shifting their assets away from equities to alternative investment options.
As markets brace for a challenging start, influenced by global geopolitical uncertainties and domestic economic indicators, investors are urged to remain vigilant and adaptable in navigating the evolving landscape of financial markets.
Additionally, fluctuations are noted in gold and oil prices, with gold slipping due to strengthened dollar and Treasury yields following positive US retail sales data. Conversely, oil prices rose amid escalating Middle Eastern tensions, following Israel's announcement of a forthcoming response to Iran's recent attacks.
Factors Behind Today's Stock Market Fall
The Indian equity market witnessed a significant downturn today, as multiple factors combined to instigate a widespread sell-off, leaving investors grappling with uncertainty.
Tension in the Middle East: Heightened tensions in the Middle East played a pivotal role in triggering the sell-off in the Indian equity market. The escalation of tensions in the region raised concerns about geopolitical stability, prompting investors to offload their positions in equities.
Global Market Turmoil: The turmoil in the Middle East reverberated across global markets, with major indices experiencing declines. The US stock market ended lower, and major Asian markets, including Nikkei, Hang Seng, and Kospi, traded under pressure, signaling a broader sentiment of unease among investors.
Rise in US Dollar Rates: Adding to the market's woes, the US dollar surged to near 106 levels and hit a 34-year high against the Japanese Yen. This surge in the US dollar rates led to an increase in US Treasury yields, prompting selling in global equity markets, including India.
Crude Oil Price Surge: Furthermore, crude oil prices soared to a six-month high in both domestic and international markets. The substantial increase in fuel prices observed in March and April 2024 compounded concerns among investors, adding to the bearish sentiment in the market.
Disappointing US Retail Sales: The release of disappointing US retail sales figures further fueled speculation and anxiety among investors. The stronger-than-expected US retail sales numbers raised fears of inflation, casting doubt on the possibility of a US Fed rate cut in the near term. Consequently, investors began shifting their assets away from equities to alternative investment options.
As markets brace for a challenging start, influenced by global geopolitical uncertainties and domestic economic indicators, investors are urged to remain vigilant and adaptable in navigating the evolving landscape of financial markets.