ewsba.se
Stock market crash: The key benchmark indices of the Indian stock market extended its morning losses and finished in the red on Thursday. The stock market crash was mainly due to the US bond yields and crude oil prices bounced back strongly from today's lows. The Middle East crisis worsened further as US President Donald Trump has hinted at a fresh strike in Iran. On the other hand, China has suspended fuel exports, which also fueled the demand-supply constraint about the black gold, which triggered sharp rally in the oil prices. These developments led to a sharp selling in the Indian stock market during the day session on Thursday.
The Nifty 50 index has tumbed around 200 points while the BSE Sensex lost over 550 points. The Bank Nifty index also ended lower, losing more than 175 points. The Bank Nifty index closed at 54,450. In this fresh crash, the Nifty 50 index has crashed below 22,500 support decisively, while the BSE Sensex came below 71,800 support.
The US 10-year bond yield has bounced back from today's lower levels, gaining over 0.75%. The US 30-year bond yield has also gained over 0.70% during Thursday dealings.
According to experts, the Indian stock market is falling due to the three basic reasons: escalation in the US-Iran tension, US bond yileds' rebound and skyrocketing crude oil prices.
In a dramatic development, US President Donald Trump has hinted at a fresh strikes in Iran. According to Al Jazeera, the US President told local reporters that he has just two coices left: either strike a deal with Iran or completely 'blow them up.' This has triggered escalation in the Middle East tension.
“The escalation in the US-Iran war is negative for the global markets, including Dalal Street, as it would further worsen the crude oil supply in the near-term. It has triggered an uncertainty in the geopolitical arrangement,” said Avinash Goakshkar.
The US Treasury yields have rebounded from today's lows. The US 10-year bond yield has shot up 0.65% to 5.674. The US 30-year bond yield too lost over 0.60% and climbed to 5.674.
“The bounce back in the US Treasury yields is more dangerous, as it would trigger shiting of foreign money from the equities to bond market. As FIIs are already bearish on the Indian equities, soaring US bond yields is something that market is unable to digest after the escalation in the US-Iran war,” said Anuj Gupta, a SEBI-registered market expert.
The SEBI-registered expert said that the escalation in the US-Iran war has triggered fresh buying in crude oil, leading to a sharp rise in the commodity's price. This is also negative for the markets, as it would hit companies' margins and profits due to inflation.
The key benchmark indices of the Indian stock market extended its morning losses and finished in the red on Thursday. The stock market crash was mainly due to the US bond yields and crude oil prices bounced back strongly from today's lows. The Middle East crisis worsened further as US President Donald Trump has hinted at a fresh strike in Iran. On the other hand, China has suspended fuel exports, which also fueled the demand-supply constraint about the black gold, which triggered sharp rally in the oil prices. These developments led to a sharp selling in the Indian stock market during the day session on Thursday.
Oil prices rose around 2% on Thursday after China suspended oil products exports, potentially tightening fuel markets already coping with supply shortages globally, while investors continued to assess renewed diplomatic efforts to end the US-Iran war.
The new front-month December Brent crude futures contract traded at $100.09 per barrel at 0829 GMT, up 2.1%, or $2.06, from Wednesday's close. The November contract expired on Wednesday, settling at $103.50 per barrel, marking a monthly gain of around 14% in September for the front-month contract.
US West Texas Intermediate crude was up $2.06, or 2.28%, to $92.48 a barrel.
Prices were volatile on Thursday, having slipped more than 1% in early trading, before rebounding.
Chinese refiners have suspended exports of oil products to regions beyond Hong Kong and Macau until further notice, four people briefed on the matter said on Thursday, a move that will further crimp war-constrained fuel markets.
"The Chinese export ban suggests concerns about domestic product availability," UBS analyst Giovanni Staunovo said, adding that it remains to be seen whether the measures will support higher crude imports after recent drawdowns in Chinese crude and fuel stocks.
Global diesel supplies have tightened as a result of falling refining capacity due to attacks linked to the Middle East and Ukraine wars, raising pressure on governments to intervene to shield consumers.
Following the sell-off in the Indian stock market, railway stocks came under the bear's radar during Thursday's trading. Flagship railway stocks IRFC, Ircon International, Rail Vikas Nigam Limited (RVNL), Railtel Corporation, Container Corporation of India, etc., are trading in the red. Ircon shares witnessed maximum beating and crashed over 6%. However, IRCTC shares are in the green zone by a whisker.
“Railway stocks are falling due to negative secondary-market sentiment. These railway stocks had witnessed a volume rally on Wednesday after the weekly and monthly expiry on Tuesday. This could also be a reason for profit-booking in railway stocks, as market sentiment is turning weak on Thursday," said Avinash Gorakshkar, Founder of Avinash MEntor Research.
44 out of 50 Nifty stocks are trading red. Shares of Bajaj Auto, Maruti Suzuki, Shriram Finance, Adani Ports, M&M, Tata Steel, Adani Enterprises, etc., are among the biggest losers in the Nifty 50.
27 of the 30 Sensex stocks are trading in the red. Tata Steel, Ultratech Cement, Tata Motors PV, Eternal, Powergrid, etc., are among the biggest losers in the Sensex.
The WTI crude oil price has shot up over 2.50% to $92.64 per barrel, whereas the Brent crude oil price has once again crossed the $100/bbl mark.
The SEBI-registered expert Anuj Gupta said that the escalation in the US-Iran war has triggered fresh buying in crude oil, leading to a sharp rise in the commodity's price. This is also negative for the markets, as it would hit companies' margins and profits due to inflation.
The key benchmark indices of the Indian stock market extended its morning losses as the US bond yhields and crude oil prices bounced back strongly from today's lows.
The Nifty 50 index has tumbed around 250 points while the BSE Sensex lost over 800 points. The Bank Nifty index also trading in red, losing more than 0.30%. In this fresh crash, the Nifty 50 index has crashed below 22,500 support decisively, while the BSE Sensex came below 71,800 support.
Traders will now turn their attention to Wednesday’s Bureau of Economic Analysis’s Personal Consumption Expenditures reading, the Fed’s preferred measure of inflation. August’s personal income and outlays report should show an acceleration in monthly headline and core inflation, according to Bloomberg Economics.
Upside surprises would reinforce the Fed’s hawkish stance and support the case for further tightening, Tim Waterer, chief market analyst at KCM Trade, wrote in a note. Softer numbers, however, could raise questions about the need for a follow-up rate hike in October and potentially take some of the steam out of the recent rise in Treasury yields, he said.
“Between the oil price, bond yields and key US inflation and jobs data, there are plenty of things to keep an eye on for the rest of the week,” Waterer wrote.
Molbio Diagnostics, Moneyview, Gujarat Kidney and Super Speciality, Transformers & Rectifiers (India), Elevate Campuses, PC Jeweller, Tata Gold ETF, etc. are the most bought stocks on Groww.
The key benchmark indices of the Indian stock market opened lower as investors weigh softer US inflation data against elevated Treasury yields, volatile crude oil prices and continued uncertainty surrounding the Middle East. The external backdrop remains mixed, leaving domestic markets sensitive to developments in both global rates and energy markets.
Nifty 50 index opened lower at 22,543 and touched an intraday low of 22,508, the BSE Sensex had a gap-down opening at 72,187, while the Bank Nifty index opendd lower at 54,583. However, the Bank Nifty stocks attracted buyers, which brought the index in the green zone. The index has made an intraday high of 55,091.
HDFC Bank, Transformers & Rectifiers, Lemon Tree Hotels, Schneider Electric Infrastructure, HFCL, MPhasis, Siemens Energy India, etc. are among the top mover stocks in the Nifty 100 index.
Transformers & Rectifiers, lemon Tree Hotels, Schneider Electric Infrastructure, HFCL, MPhasis, Siemens Energy India, etc. are among the top mover stocks in the Nifty 100 index.
Pix Transmission, Pace Digitek, Transformers & Rectifiers, MTNL, JK Cement, etc. shares are among the volume shocers on Dalal Street during the early morning deals on Thursday.
Asian stocks gained and bonds steadied after a bruising selloff as traders awaited a crucial US inflation reading for clues on the path of interest rates. The dollar headed for its best month since June.
The MSCI Asia Pacific Index gained 0.9%, with 10 of its 11 industry groups advancing. SoftBank Group Corp., an investor in OpenAI, rose more than 6% after people familiar with the matter said the artificial intelligence startup sought to raise at least $30 billion in fresh funding at a $1.4 trillion valuation.
Equity-index futures indicated the advance would spread to Europe and Wall Street.
The MCX gold rate today opened upside at ₹1,46,950 per 10 gm and touched an intraday high of ₹1,47,518 per 10 gm within a few minutes of the Opening Bell.
“Higher US Treasury yields remain a key headwind for precious metals. Expectations around US monetary policy are also driving volatility. Elevated crude prices are adding to inflation concerns. The rupee is another important factor for Indian investors. It fell 0.7% in September and 1.2% in the July-September quarter. A weaker rupee can cushion domestic bullion prices when global prices decline,” said Vikram Subburaj, CEO, Giottus.com.
The US dollar was last flat against major currencies on the day following the US inflation data. But the greenback, which has been strengthening along with rising US Treasury yields and expectations of more Fed rate hikes, gained for the month against some major currencies.
Siemens Energy India, Adani Energy Solutions, CG Power, Koak Mahindra Bank, Infosys, HCL Tech, etc. are among the top gainer stocks during the Opening Bell.
Bajaj Auto, Tata Motors, Vedanta, Grasim, M&M, IOCL, etc. stocks are amongs the top losers during the early morning trade session.
Nifty 50 index opened lower at 22,543 and touched an intraday low of 22,522, the BSE Sensex had a gap-down opening at 72,192, while the Bank Nifty index opendd lower at 54,583. However, the Bank Nifty stocks attracted buyers, which brought the index in the green zone.
According to the Groww, these shares should be on your watch list: IOCL, Union Bank of India, Adani Power, Wipro and HDFC Bank, as they are news maker stocks.
Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91).
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.