According to stock market experts, the US air strike in Syria may have a negative impact on the Indian stock market next week.
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Indian stock market opened lower on Friday but pared early morning losses and turned green with handsome gains by key benchmark indices. However, after the newsbreak of US air strike in Syria triggering rising tension in the Middle East, Indian stocks tumbled and ended in red territory for second straight session. Nifty 50 index lost 131 points and closed at 16,945 levels whereas BSE Sensex lost 398 points and closed at 57,525 mark. Nifty Bank index corrected 221 points and finished at 39,395 levels on Friday session.
According to stock market experts, global markets including Dalal Street is already under the heat of bank crisis in US and looming economic slowdown worries and this new geo-political tension in the Middle East might dent the prospects of pull back rally when the market opens on Monday next week. They said that Indian stock market or any other global market can’t afford a new tension as they already have a lot of challenges to face in upcoming sessions. They advised short term investors to look at quality agriculture and fertiliser stocks to buy if the Middle East tension further escalates. However, for long term positional investors, IT remained their favourite sector for investing.
Global triggers for Indian stock market
Speaking on how US air strike would impact Indian stock market, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “US air strike news in Syria came at a very bad time as the Indian stocks were recovering from the morning losses after losing on Thursday session. Most of the key benchmark indices had turned green with handsome gains but just few hours ahead of the market close, this fresh geo-political tension arrived, triggering sell off trigger on Dalal Street.”
Avinash Gorakshkar further said that global markets including Dalal Street is already under the stress of banking crisis in US and looming economic slowdown. So, in case, this Middle East tension further escalates, then Nifty might not be able to sustain its October 2022 low of around 16,800. Gorakshkar advised investors to keep an eye on the crude oil prices when the market opens on Monday as any rise in crude oil prices would be an indicator of fresh sell off in the markets.
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