Virendra Pandit
New Delhi: Global and domestic uncertainties amid geopolitical tensions because of the escalating war in the Middle East and the ongoing conflict between Russia and Ukraine on Monday dragged Sensex and Nifty down by over one percent.
Amid the uncertainties of the outcome of ongoing Assembly elections in Jammu and Kashmir and Haryana, while the benchmark indices BSE Sensex plummeted 1272.07 points (1.49 percent) to close at 84,299.78, and the Nifty-50 tumbled 368.10 points (1.41 percent) to 25,810.85.
The results of the polls in these two states will be declared on October 8. Two more states–Maharashtra and Jharkhand–will have Assembly elections in November. Vote for the presidential election in the US will be cast on November 5.
Last week, both the Sensex and Nifty hit record highs because of strong foreign portfolio inflows.
As India prepares for the month-long festival season, beginning October 3, the BSE Sensex and NSE Nifty, opened on a weak note on Monday, under pressure from mixed global cues and ongoing geopolitical tensions in West Asia.
Market analysts attributed the dip to global uncertainties, including rate hike concerns, and geopolitical tensions involving Israel, Lebanon, Iran, and now Yemen.
They expect domestic economic data and geopolitical developments to shape the market’s performance in the holiday-shortened week, with sector rotation and FPI flows likely to influence future gains.
Other markets were also affected. Japan’s Nikkei slumped over 4 percent, while the South Korean and Taiwanese markets also fell.
However, the Chinese markets surged after Beijing introduced measures to support its struggling economy.