Middle East tension routs stock market while realty bleeds

Spread the love

Merals shine on day of bloodbath in stock market

By S Jha

New Delhi, October 3: Absolute mayhem gripped stock market on Thursday with all indices nose diving. Sensex dived 1769 points. Nifty shed 546 points. Bank Nifty lost 1077 points.

The bloodbath in the Indian equity market was in contrast to major Asian bourses. The Chinese Hang Sang was almost flat.

Japan’s Nikkei closed higher by almost two per cent. Hang Sang after feverish rally in the past few days shed 0.75 per cent.

Nifty failed to defend 25500 level. The 50-share index sank deeper with frontline stocks melting under the heat of the Middle East tension.

Realty index was routed with loss of over four per cent. Consumer goods and auto stocks also came in firm grips of bears.

Also Raed: Pharma intermediary sparkles with sharp stock price gains

The Indian equity market saw bloodbath on fear of possible spike in the crude oil prices. Brent crude oil price has been rising for the past three days.

Rise in crude oil prices adversely impacts stocks such as Asian Paints and Bharat Petroleum. Paints and refiners were bleeding on Thursday.

BPCL was the top loser in the Nifty-50 index. The oil refiner lost over five per cent. Asian Paints also lost over four per cent. Both the stocks had been trending up until Israel escalated tension in the Middle East.

Also Read: Bear-bitten investors sight gold shine in darkness of stock market

Chartists hoped that Nifty will hold 25500 level. But an all-round selloff took Nifty lower to all support levels. Chartists claim that Nifty has a strong support at 25000 level.

There are feverish moves on part of several countries to evacuate their citizens from Lebanon. Israel announced death of eight soldiers in Lebanon on Thursday. Cues suggest that the Middle East tension may not go away so quickly.

India also fears a rise in the crude oil price and higher cost of shipments due to disruptions in the Middle East. The Indian equity markets will be wary of deepening Middle East tension per analysts.

But metals stood tall amid bloodbath on the street. JSW Steel saved an absolute embarrassment for the bulls. Tata Steel also bucked the bearish trend.

Also Read: 3 stocks on traders’ radar amid stock market volatility

Metal stocks are trending since the unveiling of the stimulus package by China. ITD Cementation with interest in EPC works clocked 20 per cent gains. This stock has been trending for the past few days.

Select pharma stocks rose on Thursday. Jubilant Ingrevia extended gains with sharp rise of six per cent on Thursday.

Disclaimer: This article makes no recommendation for buy or sell of shares of any company.

Join WhatsApp channel of The Raisina Hills