As the Israel-Hamas conflict entered its 17th day since it began on October 7, 2023, the Indian stock market experienced its fourth consecutive session of bearish activity on Monday.
The Nifty 50 index opened at a lower level of 19,521 and reached an intraday low of 19,404 during Monday's trading, marking a decline of over 400 points over the past four sessions.
The BSE Sensex, on the other hand, opened at 65,419 levels and reached an intraday low of 65,022 levels, witnessing a drop of over 1,400 points in the last four sessions.
Similarly, the Bank Nifty index opened at 43,822 levels and recorded an intraday low of 43,583 levels, reflecting a loss of approximately 825 points over the past four trading days
Reasons for the Indian stock market being down
As the Israel-Hamas conflict enters its 17th day, several factors have been impacting the Indian stock market over the last four days. According to stock market analysts, five significant reasons are contributing to this downturn.
1. Israel-Hamas War: The ongoing Middle East conflict has raised concerns among investors due to its prolonged duration. The resulting geopolitical uncertainty has put pressure on equity markets, including the Indian stock market.
2. Strong US Dollar: Despite the Israel-Palestine conflict, the US dollar index has remained high, even with the US Federal Reserve's cautious stance on interest rate hikes. This strong dollar is affecting Indian equity markets.
3. Inflation Concerns: The conflict has led to a continuous rise in crude oil prices, which could impact India's government budget since it imports a substantial portion of its oil. This surge in oil prices is causing concerns about rising inflation.
4. Foreign Institutional Investor (FII) Selling: FIIs have been consistently selling in the Indian equity market, possibly reallocating their investments from emerging markets to alternative assets such as gold, bonds, and currencies due to the strong US dollar.
5.Q2 2023 Results Below Expectations: The Indian stock market has not responded positively to the Q2 earnings results of major Indian companies.
While some companies like ICICI Bank and Kotak Mahindra Bank reported good results, the stock market's buying interest has not reflected these positive outcomes. Additionally, companies like DMart have reported weaker quarterly numbers, falling below market expectations.
Disclaimer: "The opinions and suggestions expressed in this article belong to individual analysts or brokerage firms and do not reflect the official position of newsonline24. We recommend that investors consult with certified experts before making any investment decisions."
