New Delhi: The recent surge in tensions in the Middle East has reverberated across global markets, including those in India. The Nifty 50 has seen a 4.5 percent drop, the Nifty Midcap a 3.3 percent decline, and the Nifty Smallcap a 2.3 percent fall.
This volatility has been further fuelled by a more than 5 percent hike in crude oil prices over the last two days. Despite this, market experts advise investors to stay calm, assuring that the situation is likely to stabilise soon.
Despite the global volatility, the Indian markets have shown resilience. The Nifty 50 is down 4.5 percent, the Nifty Midcap is down 3.3 percent, and the Nifty Smallcap is down 2.3 percent, indicating a robust performance in the face of adversity.
Nifty Metals, however, continued its upward trajectory, closing the week with 0.3 per cent returns.
Mixed trading took place in the global markets. The Jakarta market reported losses.
The impact of the Middle East conflict has also been felt in the US market, which closed with losses in Thursday’s session. This global trend of market volatility underscores the need for investors to remain cautious and adopt a strategic approach to their investments.
According to Krishna Appala from Capitalmind Research, two major events in the week have significantly impacted our markets — SEBI’s new futures and options regulations and the increasing geopolitical tensions between Iran and Israel, which have raised fears of potential disruptions to crude supplies.
“The key lesson here is that while we cannot predict the future, it’s important to have a high-level plan and not react in panic. These geopolitical flare-ups tend to occur periodically, and though the situation may seem critical now, such tensions have arisen before,” Appala said.
Sensex and Nifty closed in the red for the fifth session on Friday amid worries about escalating Middle East conflict. Sensex closed at 81,688 — 808 points down – as Nifty was down 200 points at 25,049.
Despite the bear attack on Nifty for the second consecutive day, there is hope for recovery. ‘On the lower end, the next support is seen at 24,750, while on the higher end, resistance is visible at 25,300,’ said Rupak De from LKP Securities. Market analysts believe that investors, who are closely monitoring the escalating conflict in the Middle East, can adopt a sell-on recovery strategy. The market’s pessimism is expected to be short-lived amid rising crude prices and fund flows to cheaper markets like China.
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–IANS
(Infographics : Pinaki Paul)
