On Thursday, India's key stock indices, the Nifty and the Sensex, traded below 19,700 and 65,800 points respectively, with the Sensex dropping by 117 points and the NSE Nifty 50 falling by 26 points. Despite this downward trend, gains were noted in Bajaj Auto Ltd., IndusInd Bank Ltd., and HDFC Bank Ltd. The metals and energy sectors experienced declines, while media and auto stocks advanced.
These market movements were fueled by significant volatility in the Nifty, triggered by escalating tensions in the Middle East. Potential Israeli retaliation against a Hamas terrorist attack and threats from Iran have soured investor appetite for risky assets, according to Prashanth Tapse from Mehta Equities Ltd. He suggested investors adopt a cautious approach in light of these geopolitical uncertainties.
The global markets also reflected this cautious sentiment. European equities followed a weak Asian session with Euro Stoxx 50 futures down 0.6%. Stocks across Tokyo, Hong Kong, Sydney, and mainland China fell over 1%. Contracts for U.S. equities also fell as the S&P 500 slumped 1.3%.
However, bucking the trend was streaming giant Netflix (NASDAQ:NFLX) which rallied post-market on the back of strong earnings results.
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