Sensex slides 1.5% on escalating West Asia tensions


Image used for representative purpose only

Image used for representative purpose only
| Photo Credit: Reuters

Key stock indices on Monday (September 30, 2024) slid about 1.5% on fears over escalating geopolitical tensions in West Asia. 

The S&P BSE Sensex fell 1,272 points or 1.49% to 84,299.78. The Sensex stocks which lost the most included Reliance down 3.23%, Axis Bank (3.12%), M&M (2.70%), ICICI Bank (2.58%), Nestle (2.12%) and Tech Mahindra (2.10%).

The NSE Nifty-50 index, too, slid 368 points, or 1.41%, to 25,810.85.

Ameya Ranadive Chartered Market Technician, CFTe, Sr Technical Analyst, StoxBox said, “Indian shares opened significantly lower on Monday, influenced by mixed global cues and escalating geopolitical tensions involving Israel, Lebanon, and Iran.”

He said the fall in Sensex and the Nifty-50 marked their worst day in nearly two months. 

“This decline was driven by concerns over potential conflicts in the Middle East that could disrupt oil supply. Mixed economic signals from the U.S. added to the uncertainty, as recent data showed a decline in the Federal Reserve’s preferred inflation gauge, fueling hopes for a potential easing of monetary policy,” he said. 

“However, investors remained cautious ahead of Fed Chair Jerome Powell’s upcoming speech at the National Association for Business Economics Annual Meeting,” he added. 

Rupak De, Senior Technical Analyst, LKP Securities said this decline indicates potential further weakness. “Sentiment may remain weak in the near term,” he added.