FINAL TRADE: Nifty ends lower at 25,015, Sensex down 810 pts; India VIX up 7%
Indian indices recouped some of their previous days losses helped by better Q2 business updates from some of the financial companies.
Indian equities after relentless sell-off yesterday triggered amid steep FII selling over the last three sessions is highly volatile in trade today. At the close, Sensex was down 0.98 per cent or 808.65 points at 81,688.45, while the Nifty index gave up over 236 pts or 0.93 per cent to close at 25,014.6.
After moving in the green, indices have again fallen sharply, thanks to the steep losses in FMCG, auto, media, realty and oil and gas pack.
Meanwhile, IT and PSU Banks, while remaining in the green, saw significant profit booking.
Vinod Nair, Head of Research, Geojit Financial Services on the markets today said, "The bearish sentiment continued as investors are monitoring the escalating conflict in the Middle East and have adopted a sell-on recovery strategy. Crude prices have moved up sharply but may be restricted due to an increase in production from OPEC+."
The pessimism on the market is expected to continue in the near term amidst rising crude prices and fund flows to cheaper markets like China, added Nair.
Raj Patel, CMO at MintCFD said, "Indian markets crashed due to worries about geopolitical tensions regarding the Iran-Israel war, thereby stoking fears of a spike in crude oil prices. New SEBI F&O rules are likely to dampen the retail sentiment and reduce the trading volumes. Investors should keep an eye on Crude oil prices, as a rise is negative for oil-importing countries like India"
The sector's relative strength suggests it may be viewed as a safer haven amid global uncertainties. However, ongoing growth concerns and geopolitical issues could maintain volatility in IT and related sectors moving forward.
OMC stocks are in focus as the crude oil price has spiked amid the escalating Middle East tension. Shares of HPCL and Indian Oil (IOC) traded with a cut of up to 1 per cent.
Bank of Baroda shares gained over 4 per cent as Citi maintained its buy call on the stock.
Meanwhile, Asian markets traded with gains, led by the Hang Seng's gain of around 2 per cent.
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