Mumbai, India – On Thursday, India’s key stock indices faced a downward trend, with the Sensex dropping by 117 points to trade below 65,800 points, and the NSE Nifty 50 falling by 26 points to trade below 19,700 points.
Despite this overall decline, specific gains were observed in stocks like Bajaj Auto Ltd., IndusInd Bank Ltd., and HDFC Bank Ltd. In contrast, the metals and energy sectors experienced declines, while media and auto stocks showed positive movement.
These market fluctuations were primarily driven by substantial volatility in the Nifty, triggered by escalating tensions in the Middle East. The possibility of Israeli retaliation in response to a Hamas terrorist attack, coupled with threats from Iran, has led to increased caution among investors regarding riskier assets, as noted by Prashanth Tapse from Mehta Equities Ltd. Tapse advised investors to adopt a cautious approach given the geopolitical uncertainties.
This sense of caution was not limited to India alone. Global markets also reflected similar sentiments, with European equities following a weak Asian session, and Euro Stoxx 50 futures declining by 0.6%. Stock markets in Tokyo, Hong Kong, Sydney, and mainland China all saw declines exceeding 1%. Furthermore, contracts for U.S. equities dropped, with the S&P 500 declining by 1.3%.
An exception to this trend was streaming giant Netflix (NASDAQ:NFLX), which saw a post-market rally on the back of strong earnings results.