• Source:JND
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Stock Market Today: The domestic equity market plummeted on Monday after Iran and the US failed to reach an agreement to end the war and open up the Strait of Hormuz, a key energy supply waterway in the Persian Gulf. At the time of writing, key equity benchmark indices were trading nearly 2 per cent lower. Sensex was quoted at 76,017.43, 1532.82 points or 1.98 per cent. Nifty50 was trading at 23,582.10, down 468.50 points or 1.95 per cent.

The key indices started the session sharply lower with Sensex opening at 75,937.16 as compared to the last day's closing of 77,550.25. Nifty50 started trading at 23,589.60 as compared to the last day's closing of 24,050.60.

Meanwhile, amid escalating tension due to recent developments, crude prices soared significantly. At the time of writing, Brent Crude was trading at $102 per barrel, up 6.85 per cent.

"With the failure of US-Iran peace talks and Trump’s declaration of US naval blockade in the Strait of Hormuz, uncertainty and along with it crude price have spiked. Brent at $103 is emerging as yet another threat to the economy and markets," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited. 
 
"How this naval blockade, which in effect will be a US blockade of Iran’s blockade, will play out remains to be seen. There can be dramatic developments on the geopolitical front and consequently on markets also. The ideal strategy in this ultra-uncertain situation is to wait and watch," Vijaykumar noted. 

To Gainers And Losers

In the early trade, except for Sun Pharma, all other stocks from the Sensex basket were trading in negative territory, with Indigo, Maruti, L&T, Asian Paints, Bajaj FinServ, Adani Ports, Mahindra And Mahindra, SBI, and Ultratech Cement being the top losers.

"Markets are likely to shift back into a risk-off mode. Elevated crude prices, geopolitical uncertainty, and persistent FII outflows will act as key overhangs. Volatility is expected to remain high through the week, especially with ongoing geopolitical developments, inflation data, and earnings announcements acting as near-term triggers," said Ponmudi R, CEO of Enrich Money. 

The rupee fell 49 paise to 93.32 against the US dollar at the start of trading, under the influence of high crude oil prices and the strength of the US dollar in an unstable geopolitical context.


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