Stock market began the week in red with Nifty trading below 24,000 and Sensex tumbling over 2,400 points as the Middle East conflict continues to intensify. Around 12:15 pm, NSE Nifty50 was trading 23,850.40, down 600 points or 2.4%. BSE Sensex plunged 1,916.68 points or 2.4% to trade at 77,001.22. The steep sell-off erased over Rs 12.39 lakh crore from the combined market capitalisation of all BSE-listed companies in under 10 minutes, bringing it down to Rs 437 lakh crore, according to ET. Nearly all components of the 30 share packed Sensex were trading in red, with SBI and IndiGo among the worst hit.This follows a weak close on Dalal Street last week, when eight of the ten most valued companies together saw their market capitalisation shrink by Rs 2,81,581.53 crore.Analysts expect geopolitical developments to remain the key factor guiding market direction for this week as investors will be closely watching how the ongoing crisis in the Middle East could influence global crude oil prices. Market participants will also track global cues and the trading behaviour of foreign investors, which are likely to play a crucial role in shaping sentiment on Dalal Street.Oil prices jumped sharply on Monday, climbing above $114 per barrel for the first time since 2022, as the intensifying conflict involving Iran sparked fears of supply disruptions and risks to vital shipping routes in the Middle East. The global benchmark Brent crude rose past $114 a barrel after trading reopened on the Chicago Mercantile Exchange, marking a 23% surge from Friday’s close of $92.69.According to Ajit Mishra, SVP, Research at Religare Broking Ltd, external factors will remain critical for market movement in the near term. “This week, movements in global crude oil prices and further geopolitical developments in West Asia will remain critical external variables influencing market direction. The week will also feature key macroeconomic releases that could shape near-term sentiment,” Mishra told PTI.Ponmudi R, CEO of Enrich Money, said that investors should prepare for continued volatility as geopolitical tensions continue to dominate market thinking. He further added that trends in foreign institutional investor (FII) flows and currency movements will also be closely watched, as they often reflect broader shifts in global capital allocation and confidence in emerging markets like India.Dalal Street had a difficult run last week, with benchmark indices posting steep losses. The BSE Sensex fell 2,368.29 points, or 2.91%, while the Nifty declined 728.2 points, or 2.89%.Foreign investors also stepped up their selling in Indian equities. Over the past four trading sessions, they withdrew nearly Rs 21,000 crore (around $2.3 billion) from the market as the crisis in the Middle East intensified.Meanwhile stock markets in Asia saw sharp losses, with Hong Kong’s HSI plunging over 700 points or 2.7% to 25,053. Japan’s Nikkei tumbled 3,880 points down to trade at 51,740 at around 9:00 am IST. Kospi also took a major hit, falling 7%. (Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
