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The Indian markets have witnessed strong volatility in today’s session, swinging between gains and losses. The benchmark indices plunged nearly 1 per cent in the final hour of trade, amid worries about escalating conflict in the Middle East. Banking, FMCG, and auto stocks bore the brunt of the sell-off, while IT stocks offered a brief glimmer of hope amidst the market turmoil.
The Friday Story Of Wild Swings
Early Trade: While the benchmarks started on a negative note with the Sensex, which had dropped over 2 per cent in the previous session, opened lower and fell half a percent in morning deals.
What: The equity benchmark indices then recovered almost 1.5 per cent from their day’s low in Friday’s trade as they witnessed buying action after four straight sessions of losses. The Sensex surged 1,295 points from its day’s low to reach a high of 83,347 while the broader Nifty rallied 378 points from its low to hit the day’s high of 25,472.65.
Fag-End: But by the last leg of the trade, the Indian indices again turned red. The Sensex shed 1,622 points from the day’s high while the Nifty tanked 481 points to its day’s low of 25,002.5 around 2:15 pm.
What Is Spooking The D-Street?
Concerns over the escalating conflict in the Middle East have raised fears of potential disruptions to crude supplies from the top oil-producing region, pushing prices higher—a situation that impacts net importers like India. Meanwhile, FIIs are diverting funds to China following its recent stimulus measures.
“The last three days have witnessed huge FII selling of Rs 30,614 crores in the cash market. FIIs are moving money from expensive India to cheap Hong Kong on expectations that the monetary and fiscal stimulus being implemented by the Chinese authorities will stimulate the Chinese economy and improve earnings of Chinese companies,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
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