Sensex, Nifty post worst day in over two months on rising geopolitical tensions in Middle East

Stock market news: Indian benchmarks kicked off the trading week by recording their worst day in over two months amid the rising tensions between Iran and Israel that could create supply-chain disruptions in the Strait of Hormuz, one of the world's most strategically important choke points.

The benchmark BSE Sensex fell 845.12 points, or 1.14 per cent, to 73,399.78, while the broader NSE index lost 246.90 points, or 1.10 per cent, to 22,272.50, as investors turned risk-averse after Iran's retaliatory attack on Israel over the weekend.

“The Bank nifty Index OI data suggests a sideways move for the next few days with both sided volatility. The largest number of positions currently is at the 48,000 strikes, traders are creating short straddles at this level and are also hedging their short naked put options at the same level strike,” said Rahul Ghose Founder & CEO, Hedged.in.

"Although the call writing of the strikes higher than 48,000 is higher in number than the put writing, a large move on either side is still not shown as per today's data," Ghose added.

Kirang Gandhi, Financial Mentor, FP India, pointed out that if conflicts between Iran and Israel continue, it might make oil prices go up, making it uncertain whether interest rates will be cut. He mentioned that political tensions like these could really affect how confident investors feel. Right now, oil prices are higher because people are worried about the supply, and assets like gold and the dollar are more appealing because they seem safer.

He said it's important to keep a close eye on these things. Even though there's a lot of uncertainty, he thinks that strong company earnings and a lot of money flowing into the market in this quarter could help keep the market positive, even with all these tensions going on.

Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd, said “The Sensex is down significantly in the last few days from 75,124 levels to 73,417 levels, almost 1700+ points profit booking from the higher levels, indicating a market correction. This could be a good time to enter for long-term investors with a strong risk appetite.”

Sensex top gainers

Nestle Ind: 1.22 per cent
Maruti: 1.14 per cent
Bharti Airtel: 0.16 per cent

Sensex top losers

Wipro: -2.70 per cent
ICICI Bank: -2.37 per cent
Bajaj Finserv: -2.15 per cent
Bajaj Finance: -2.09 per cent
Tata Motors: -2.05 per cent

Nifty top gainers

ONGC: 5.80 per cent
Hindalco: 2.40 per cent
Maruti: 1.17 per cent
NestleInd: 0.83 per cent
Britannia: 0.38 per cent
Bharti Airtel: 0.24 per cent

Nifty top losers

Shriram Finance: -3.12 per cent
Wipro: -2.60 per cent
ICICI Bank: -2.43 per cent
Bajaj Finance: -2.28 per cent
Bajaj Finserv: -2.22 per cent
Adani Ports: -2.06 per cent