Sensex Today Ends 456 Points Lower

After opening on a negative note, Indian share markets Slipped further as the session progressed and ended the day weak.

Benchmark equity indices were seen languishing in the negative zone on Tuesday amid escalation in the Iran-Israel war.

At the closing bell, the BSE Sensex stood lower by 456 points (down 0.6%).

Meanwhile, the NSE Nifty closed lower by 96 points (down 0.4%).

ONGC, HUL, and Titan were among the top gainers today.

Infosys, Wipro, and Bajaj Finserv on the other hand, were among the top losers today.

The GIFT Nifty ended at 22,191 down by 161 points.

Broader markets ended the day lower. The BSE Mid Cap ended marginally higher and the BSE Small Cap index ended 0.6% higher.

Sectoral indices are trading mixed with stocks banking sector, the power sector, and the realty sector witnessing buying. Meanwhile, stocks in the metal sector, It sector, and realty sector witnessed selling pressure.

Shares of Cummins India, Hindustan Aeronautics, IPCA hit their respective 52-week highs today.

The rupee is trading at 83.5 against the US$.

Gold prices for the latest contract on MCX are trading 0.4% lower at Rs 72,538 per 10 grams.

Meanwhile, silver prices are trading 0.3% higher at Rs 83,625 per 1 kg.

Here are five reasons why Indian Markets are falling today

#1 Iran-Israel War

Tension in the Middle East is the major reason for selling in the Indian equity market as this has put doubts regarding the geo-political uncertainty in the region.

Israel's military chief's statement that there will be a response to Iran's attack has increased the probability of escalation of tension in the Middle East.

#2 Weak Global Market

After escalation in the Middle East, selling has taken place across the global bourses. European stocks plummeted, mirroring selloffs in major Asian markets like Nikkei, Hang Seng, Kospi, etc., and Wall Street.

#3 Rising Bond yields

Rising US bond yields are spooking investors as it reduce the prospects of rate cuts by the Fed this year. High bond yields are negative for risky assets like equity and will accelerate FII selling in India.

#4 Soaring Crude Oil Prices

Crude oil prices have surged to a six-month high in domestic and international markets. The fuel prices have risen to the tune of 6% in March 2024 whereas, in April 2024, it has surged more than 3% to date.

These prices further rose on Tuesday amid heightened tensions in the Middle East. Brent crude rose 0.5% to US$90.6 a barrel.

#5 FII's Selling

Due to geopolitical uncertainty and rising US dollar rates, FIIs are fishing out money from the Indian stock market. On Monday, they sold out Indian stocks worth Rs 32.7 bn.
 

Zomato Launches Electric Fleet

In news from the retail segment, Zomato, on Tuesday, unveiled a new service, the large order fleet, to efficiently manage sizable orders for gatherings, parties, and events.

Goyal emphasized that this new fleet is specifically crafted for gatherings accommodating up to 50 individuals, addressing a gap in their service offerings. These new vehicles should solve most of the problems our customers face while placing large orders on Zomato.

Explaining the rationale behind this development, Goyal said that Zomato previously managed large orders through multiple delivery agents, resulting in subpar customer experiences.

However, the founder of the food-delivery behemoth also informed that the new feature was still evolving and is a work in progress. He added that Zomato is in the process of adding more features, such as cooling compartments and hot boxes with temperature control.

Notably, this announcement follows a recent incident where Zomato faced backlash on social media for introducing a "pure veg fleet" dedicated to delivering orders from vegetarian-only restaurants.

Responding swiftly to criticism and concerns, the company promptly retracted its plans for distinct green uniforms and boxes within 24 hours of the initial announcement.

In the past year, Zomato's share price has surged by 257%, while since listing, the stock is up 44%.

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Why Jio Financial Services Share Price is Rising

Moving on to news from the financial sector, Jio Financial Services, the financial subsidiary of Reliance Industries, witnessed a significant surge of 5% today.

This increase follows the company's announcement, made through an exchange filing on Monday, regarding the signing of an agreement to establish a 50:50 joint venture with BlackRock.

The venture aims to engage in wealth management activities, including the establishment of a wealth management company and, subsequently, a brokerage firm in India.

The company also informed investors that the launch of the wealth management and broking business is subject to regulatory and statutory approvals.

The broking and wealth management sector in India is experiencing significant growth, fueled by the surge in demat accounts in recent years.

Projections indicate promising prospects for the wealth management industry, with expectations of a substantial rise in high-net-worth individuals (HNIs) and ultra-high-net-worth individuals (UHNIs) in India.

Over the past five years, individuals with incomes surpassing Rs 10 m have seen a 15% increase, with forecasts suggesting their numbers will reach 3.4 lakhs in the next five years, contributing to the sector's expansion.


More By This Author:

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

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