Good morning, readers. Welcome to our live coverage of the stock market on Thursday, 11 June.
Dalal Street slipped in opening trade on Thursday as the Sensex lost 367.19 points to 73,615.99, while the Nifty 50 shed 110.55 points to 23,104.40, on the back of a poor showing in global markets coupled with increasing geopolitical issues. The market is set to see nervousness throughout the day, with growing West Asian tensions, a steep fall in Wall Street overnight and a further rise in crude prices likely to spook investor sentiment.
Initial trends in GIFT Nifty suggest Dalal Street may start with a dip. GIFT Nifty slipped by 87 points (0.38%) to 23,053.50 from 23,140.50 levels at 7.47 AM.
Benchmark indices managed modest gains to close Wednesday at home. The Nifty 50 closed at 23,214.95, higher by 27.15 points, and the Sensex closed at 73,983.18, higher by 64.42 points. Defensive sectors received support from FMCG and private banks, while profit booking occurred in a number of broader market counters.
But overnight the mood has shifted. The US markets plunged following the remarks from the president of the USA, Donald Trump, on the Iran issue that led to fears of escalation of politics. The Dow Jones was down by 1.87 per cent by the end of the day, while the S&P lost 1.62% and the NASDAQ nearly 2%.
Asian markets are feeling the pressure this morning as well. Japan’s Nikkei, South Korea’s Kospi and Australia’s ASX 200 all dipped in early trading as investors react to rising geopolitical risks and higher oil prices.
Crude oil has once again become a major concern for the market. Brent crude has moved above $95 a barrel, and WTI crude is approaching $93 after reports that Iran has moved to block traffic through the Strait of Hormuz following fresh US strikes on Iranian targets. Any prolonged increase in oil prices could have ramifications for India’s inflation, corporate earnings and import bill.
Technically, traders would be watching the Nifty’s support zone around 23,070 closely. Resistance is located around the 23,450-23,500 zone, where selling pressure appeared in recent sessions. Today is also the weekly expiry of Sensex contracts, which may add to the volatility during the day.
We will keep you updated throughout the day on the latest developments regarding the Sensex, Nifty, Bank Nifty, top movers, various sectors, global cues, crude oil, the rupee’s movement, and important corporate news.
Stay tuned.