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Last week there was a lot of enthusiasm in the stock market. After the rise of two consecutive trading days, there was hope that when the stock markets open on Monday, they will once again fill the enthusiasm among the investors. But after some brief rise, the stock market once again started showing its red color. After 11 am, Sensex and Nifty are moving towards a big decline. Where the Sensex did not see a fall of more than 600 points.

On the other hand, Nifty took a dive of about 150 points. In fact, this decline is a sign of increasing enmity between Trump and Iran. Due to which the price of crude oil has increased to more than $ 110 per barrel. Due to which there is pressure in the stock market. Due to this decline, stock market investors have suffered a loss of more than Rs 1.72 lakh crore. Let us also tell you what kind of figures are being seen in the stock market.

Stock market falls again

The phase of decline has started once again in the stock market. Bombay Stock Exchange's main index Sensex fell by 590 points to 72,728.66 points. However, Sensex opened with 73,477.53 points and soon reached the day's high of 73,588.75 points. After that selling started in Sensex. At 11:25 am, the Sensex was trading at 72,932.44 points with a rise of 388 points.

On the other hand, the main index of the National Stock Exchange, Nifty, fell by about 150 points to 22,542.95 points, which is the lower level of the day. Whereas in the morning Nifty opened with a rise of 22,780.30 points and during the trading session it reached the day's high level of 22,798.25 points. However, at 11:27 am, Nifty was trading at 22,617.65 points with a fall of 95.45 points.

Which stocks fell the most?

The biggest Sensex losers included IndiGo, Kotak Mahindra Bank, Reliance Industries (RIL), Sun Pharma, Adani Ports and ICICI Bank, which fell by more than 1-4%. On the contrary, shares of Zudio (parent company Trent), Tech Mahindra, Titan, Infosys and Power Grid saw a gain of 1-4%. About 1,702 shares declined on NSE, while 1,036 shares gained and there was no change in 85 shares. Nifty Oil & Gas was one of the biggest loser sectoral indices, falling more than 1.3 per cent. In contrast, Nifty PSU Bank gained more than 1 per cent. Meanwhile, a jump of about 4 percent was seen in India Vix.

Fears of Iran-America war increasing

On Sunday, Trump claimed that the US would significantly intensify its attacks on Iran on Tuesday if Iran does not open the Strait of Hormuz – a vital waterway for the movement of oil and other trade. In a strongly worded post on Truth Social, the US President wrote, "Tuesday will be 'Power Plant Day' and 'Bridge Day' for Iran – both at the same time. This has never happened before!!!

In another interview, he said that talks are still going on and a deal can be reached before the deadline. He said there was a good chance a deal could be reached soon, but if Tehran failed to do so, he would "blow up everything there". It is noteworthy that Trump has repeatedly claimed that the US administration is in talks with Iran's top leaders, but Iran has repeatedly rejected this claim. On the other hand, Iranian officials and leaders responded in Trump's language.

Oil prices above $110

Trump's new threats regarding Iran increased concerns of increasing tensions in the oil-rich Middle East, sending oil prices higher. Brent crude futures were up nearly 1 percent at $110 a barrel. At the same time, WTI crude futures were hovering around $111.5 per barrel. There has been a huge rise in oil prices since the war started in late February this year. After the closure of the Strait of Hormuz in March, oil prices crossed the important level of $100. This happened for the first time after Russia's attack on Ukraine in 2022.

rise in rupee

On Monday, the rupee opened with a gain of 0.1 per cent at 93 against the US dollar, whereas in the previous session it had closed at 93.10. Indian currency has seen rapid improvement recently. This happened because RBI has taken some new steps to curb rupee speculation, due to which traders are expecting a huge surge in dollar sales within the country due to unwinding of their positions.

On Wednesday, RBI further intensified its efforts to support the currency. Under this, banks have been barred from selling 'rupee non-deliverable forwards' (NDF) to customers living inside and outside the country, and companies have also been prohibited from re-booking canceled forward contracts.

FII selling continues

Despite gains in the markets in the last two sessions, heavy selling by foreign investors continued, due to which investor morale remained weak. According to NSE data, FIIs remained net sellers of Indian stocks for the 23rd consecutive session. On Thursday he sold shares worth about Rs 9,931 crore. Although these figures do not reflect today's activity, continuous capital outflows in recent sessions have negatively impacted investor sentiment.

global market market

Global markets were mixed as investors assessed the potential impact of the long-running war and Trump's threats. Despite these concerns, Japan's Nikkei index rose more than 1%, while South Korea's Kospi index gained about 0.65%.

Wall Street and other major markets remained closed on Friday on the occasion of 'Good Friday'. On Thursday, the Dow Jones Industrial Average fell 0.13%, while the S&P 500 gained 0.11% and the Nasdaq Composite gained 0.18%. Dow Jones futures remain almost stable at present.

What next?

Clouds of uncertainty are looming over the ongoing conflict in West Asia. In such a situation, VK Vijayakumar, Chief Investment Strategist, Geojit Investments, believes that the market will continue to fluctuate, and it will continue to react to possible good or bad news. He said that there is a high possibility of further war breaking out in the next few days. The market will keep a close eye on the reaction of crude oil prices to war-related events. If the Strait of Hormuz is opened by any means, the market will react positively, even if the conflict continues.

Meanwhile, there are some important trends in the market from which investors can take advantage. Despite weakness in the overall market, the IT sector remains strong. There is an opportunity for short-term trading in the IT sector, as Q4 results are likely to be better than expected and the sector will benefit from the fall in the rupee. Similarly, there is a good opportunity for long-term investors in banking stocks, because the valuations of these stocks are quite attractive.

He further said that the only reason for the sharp fall in the share prices of the banking sector, especially private banks, is the continuous selling by FIIs (Foreign Institutional Investors). The fundamentals of the sector are quite strong and key indicators suggest deposit and credit growth will be strong. Investors who are patient will be well rewarded.