Stock market today: The Indian share market on Monday, October 9, settled lower, snapping a two-day winning streak as investor sentiment took a hit due to a conflict between Israel and Palestine. The price of crude oil spiked by 5 per cent due to geopolitical tensions. Besides, the US rate interest concerns also worried investors.

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At close, the S&P BSE Sensex was down 483.24 points, or 0.73 per cent, at 65,512.39, and the NSE Nifty was down 141.15 points, or 0.72 per cent, at 19,512.35 levels.

"An unforeseen escalation in the Middle East has rekindled pessimism in global markets. Moreover, the rapid surge in oil prices presents a significant threat to the global market, which is already dealing with elevated inflation and interest rates," said Vinod Nair, Head of Research at Geojit Financial Services.

Among the Nifty 50 stocks, 43 stocks declined, with Adani Enterprises, Hero MotoCorp, M&M, HDFC Life, and Tata Steel being the top laggards, slipping between 5.09 per cent and 2.03 per cent and 7 advanced, with Dr Reddy's Laboratories, HCL Technologies, Tata Consumer Products, ONGC, and HUL being the top losers, rising between 1.13 per cent to 0.34 per cent.

In the mid-and small-cap segments, we observe consolidation as investors reshuffle their portfolios due to premium valuations in this space.

Nifty Mid Cap 100 and Small Cap 100 also ended over 1 per cent lower.

Nair also said that among sectors, financials and consumer discretionary sectors notably underperformed, primarily due to concerns regarding earnings vulnerability if inflation continues to rise. Conversely, the IT sector is displaying signs of returning to normalcy. While consensus estimates for Q2FY24 remain positive, it's important to note that geopolitical tensions could potentially disrupt this optimistic outlook.

On the sectoral front, the Nifty Bank was down 1.07 per cent at 43,886.5.

TECHNICAL VIEW 

"We believe that the Nifty is in the process of retracing the rise it has witnessed from 19,333 – 19,676. The Nifty is likely to resume its next leg of up move from the support zone, and hence, in case of a gap-down opening or a dip, it should be used as a buying opportunity," said Jatin Gedia, Technical Research Analyst at Sharekhan by BNP Paribas.

Further, Gedia added that the Bank Nifty is currently oversold and we can observe signs of divergence on the daily charts; however, price confirmation is awaited. In terms of levels, 43,700–43,600 shall act as a crucial support zone, while 44,200–44,300 shall act as an immediate hurdle zone for the Bank Nifty.

BUZZING STOCKS 

Kaynes Technologies stock was up nearly 4 per cent after the company entered into a Memorandum of Understanding (MoU) with the government of Telangana for the setting up of an outsourced semiconductor assembly and testing (OSAT) and compound semiconductor manufacturing facility in the state (Telangana). 

Conversely, Rail Vikas Nigam (RVNL) shares were down over 5 per cent on the BSE despite bagging two orders worth Rs 651 crore from Maharashtra Metro Rail Corporation Limited (MMRCL).

Adani Ports shares were down over 5 per cent on Haifa port worries over the Israel conflict. 

GLOBAL MARKETS 

Crude oil prices surged and world share prices were mostly lower on Monday after the Israeli government declared war following deadly attacks by Hamas from the Gaza Strip. U.S. futures declined.

The bond market in the US will be closed on Monday for the Columbus Day holiday, but the New York Stock Exchange and Nasdaq will remain open. Oil prices were up more than $2 a barrel after gaining more than $3 earlier in the day. Conflict in the Middle East often pushes oil prices higher, given the risk of disruptions to supplies.

(With agency inputs.)

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