Mon Oct 07 03:52:41 UTC 2024: ## Indian Stock Market Plunges Amidst Middle East Tensions, Worst Week of 2024
**MUMBAI, India – October 6, 2024** – The Indian stock market experienced a sharp decline last week, marking the worst week of 2024, driven by escalating tensions in the Middle East. The benchmark BSE Sensex plunged 4.53%, ending the week at 81,688.45, while the Nifty 50 index hovered close to the 25,000 mark. The overall market capitalization of BSE-listed companies plummeted by ₹17 lakh crore.
Leading the downward spiral were HDFC Bank, ICICI Bank, and Reliance Industries, with the latter two experiencing their worst weeks of the year. ICICI Bank witnessed a 5% drop, while Reliance Industries saw a decline of 9%. HDFC Bank’s shares also plummeted by 5.5%.
Analysts are pointing to several crucial levels for the Nifty, with the 25,000 mark being an immediate concern. A breach of the 24,750 level, the September series swing low, could trigger further downward momentum.
Despite the grim outlook, experts remain cautious about predicting a quick rebound. The ongoing tensions between Iran and Israel, with no positive developments in sight, are expected to dampen sentiment in the coming week. The upcoming Reserve Bank of India’s policy announcement on Wednesday, while unlikely to feature a major interest rate cut, may also create further volatility.
The earnings season is set to kick off next week, with major companies like TCS, Tata Elxsi, and IREDA set to announce their results. Meanwhile, foreign investors continued their selling spree, offloading another billion dollars in the cash market on Friday, bringing their total sales over the past five trading sessions to over $5 billion. Domestic investors, however, remained net buyers.
Experts offer mixed opinions on the near-term outlook. While some predict a support level at 24,750 and a resistance at 25,300, others anticipate further decline and advise caution in short positions. The Nifty Bank index, nearing a 450-point distance from its record high of 54,467 since September 11, also shows signs of weakness.
Amidst this market turmoil, several companies reported their quarterly results, showcasing mixed performances. While some segments like jewellery and FMCG displayed positive growth, others like banks and the real estate sector reported slower growth or challenges.
Overall, the Indian stock market is navigating a difficult terrain, with global tensions and domestic concerns weighing on investor sentiment. The coming week is likely to witness further volatility, as investors grapple with the evolving landscape.
First Piper 