Sensex Today Tanks 845 Points; 5 Reasons Why Indian Share Market Is Falling

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

Indian benchmark equity indices started the week on a lower note on Monday, mirroring losses in Asian markets, as investor sentiment was subdued after Iran's retaliatory attack on Israel over the weekend spurred fears of a wider regional conflict.

At the closing bell, the BSE Sensex stood lower by 845 points (down 1.1%).

Meanwhile, the NSE Nifty closed lower by 242 points (down 1.1%).

Bharti Airtel, ONGC, and Nestle were among the top gainers today.

ICICI Bank, Wipro, and Bajaj Finance on the other hand, were among the top losers today.

The GIFT Nifty ended at 22,346 down by 241 points.

Broader markets ended the day lower. The BSE Mid Cap and the BSE Small Cap index ended 1.5% lower.

Barring the energy sector and the oil & gas sector, all other sectoral indices are trading negatively with stocks banking sector, power sector, and realty sector witnessing the most selling pressure.

Shares of HEG, Hindustan Aeronautics, and Vedanta hit their respective 52-week highs today.

The rupee is trading at 83.45 against the US$.

Gold prices for the latest contract on MCX are trading marginally lower at Rs 71,819 per 10 grams.

Meanwhile, silver prices are trading 0.7% higher at Rs 83,350 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.

#2 Weak Global Market

After escalation in the Middle East, selling has taken place across the global bourses. The US stock market ended lower on Friday. In the early morning session on Monday, major Asian markets like Nikkei, Hang Seng, Kospi, etc., are trading under pressure.

#3 Rising Dollar Price

US dollar is continuously rising and the US dollar index has come close to 106 levels and the US dollar rate has touched 34-year high against the Japanese Yen. This has spurt the US Treasury yields that has spurt selling in global equity market, which includes the Indian stock market.

#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.

#5 FII's Selling

Due to geopolitical uncertainty and rising US dollar rates, FIIs are fishing out money from the Indian stock market. On Friday, they sold out Indian stocks worth Rs 80.3 bn in the cash segment whereas they sold out around Rs 2,000 worth of shares in the F&O segment.

Reliance Power Wind Project Deal Done

In news from the power sector, Shares of Reliance Power fell nearly 5% on 15 April after the company had reported that it had completed the slump sale of its Vashpet, Maharashtra, wind power project to JSW Renewable Energy.

In a regulatory filing on 12 April, Reliance Power reported that it had concluded the slump sale/transfer of its 45 MW Wind Power Project located at Vashpet, Maharashtra to JSW Renewable Energy (Coated) and the consideration amounting to Rs 1.3 bn had been received.

On 27 March, it was reported that JSW Renewable Energy (Coated), which is a wholly-owned subsidiary of JSW Neo Energy and a step-down subsidiary of JSW Energy, had agreed to acquire the renewable energy generation capacity from Reliance Power.

Earlier, in January 2024, Reliance Power had also announced that it had signed an agreement to sell its 1,200 MW Kalai II hydroelectric project in Arunachal Pradesh for Rs 1.3 bn to THDC India. According to a filing, the purpose of agreeing was to monetize the hydroelectric power project.


Aster DM Hits Record High

Moving on to news from the healthcare sector, Shares of Aster DM Healthcare zoomed 14% to hit a fresh record high of Rs 558 on the National Stock Exchange in early deals on 15 April. The gains come after the company announced a special dividend of Rs 118 a share.

Average trading volume on the counter jumped more than four-fold, with a total of 1 crore shares changing hands on BSE and NSE combined, compared to the weekly average of 21 lakh.

The Aster DM Healthcare board on 12 April approved the declaration of a special dividend of Rs 118 a share payable to those shareholders whose names stand on the register of members of the company as of April 23.

This special dividend will be paid within 30 days from the date of the declaration. The board has decided not to declare an interim dividend for FY24.

The Aster DM stock has rallied 37% in the past two weeks after the company completed the separation of its India and GCC businesses on 3 April. Under the separation plan, a consortium of investors, led by Fajr Capital, a sovereign-backed private equity firm, acquired a 65% stake in Aster GCC.

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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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