Stock Market Outlook Tomorrow: After Market Crash Will Nifty, Sensex Rally Tomorrow?

Stock Market Outlook: The Indian stock market witnessed a crash yesterday, Monday, April 13. Both benchmark indices, Sensex and Nifty, slipped nearly 1% even after recovering from the early intra-day losses. BSE Sensex crashed over 700 points, that is 0.91%, to end at 76,847.57. Earlier in the session, it dropped by around 1700 points. Similarly, NSE Nifty dripped by 208 points, that is 0.86%, and settled at 23,842.65. Most sectors bled red except power, telecom, and defence. The worst hit include IT, energy, auto, FMCG and gas. The market crashed due to the ongoing war between Iran and US as the talks in Pakistan’s Islamabad failed to achieve a ceasefire deal. The crude oil prices also crossed $100 on Monday, signalling that the West Asian war may intensify further. The decision by US CENTCOM and Chinese reaction to the naval blockade also triggered concerns of prolonged war. The dollar strengthened in comparison to its Group-of-10 peers. 

In contrast, the Asian markets including Japan’s Nikkei, and South Korea’s Kospi, gained over 2 percent and 3.05 percent, respectively. 

Stock Market Today

The Indian stock market is closed today, Tuesday, April 14 as the country commemorates Dr. Baba Saheb Ambedkar Jayanti. Trading is closed on both indices – BSE and NSE. It will resume tomorrow on April 15. 

Stock Market Outlook Tomorrow

According to market experts, the market may likely rally tomorrow as reports of a second round of negotiations between US and Iran emerged. Bent crude prices stabilized below $100, which was reflected in the Gift Nifty, which was quoting 260.50 points, or 1.09 per cent higher, at 24,138.

Analysts say that NIFTY is likely to gain and cross 24,000 mark on Wednesday. 

Donald Trump on Tuesday morning claimed that he got a call from credible people in Iran who want to make a deal. He said Iran was in touch with his administration and US will not allow Tehran to develop a nuclear weapon.

Macroeconomic Indicators Offer Support To Market

That said, domestic macroeconomic indicators offer some support. India’s recent CPI inflation print showed only a modest uptick, with limited pass-through from elevated energy prices.

On the modest rise in CPI Inflation rate, Dipti Deshpande, Principal Economist at Crisil said, “Despite a full month since the West Asia conflict began, retail inflation showed relatively low impact of the energy shock.”

Deshpande noted that while the government announced an increase of Rs 60 in domestic LPG cylinder (LPG and PNG together has a small weight of 1.98% in CPI), it kept retail prices of petrol and diesel (combined weight of 4.8% in CPI) unchanged. Thus, retail inflation in March was fairly insulated from the energy price shock. Core inflation was contained by slower gold and silver inflation.

Additionally, early indication from derivatives markets remain positive, with GIFT Nifty rising over 1 per cent to 24,126, indicating a potentially strong opening when markets resume trading on Wednesday.
On the downside, concerns persist over the initial forecast of a below-normal monsoon by the India Meteorological Department, which could elevate food inflation and weigh on investor sentiment going forward.

(With inputs from ANI)

DISCLAIMER: This article is for information purposes only. For any market-related advice, consult a financial expert.

Also Read: Stock Market Holiday on Ambedkar Jayanti? Are NSE, BSE Open or Closed Today on April 14? Here’s What Traders Need to Know