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Sensex, Nifty 50 slide as US to blockade Iran ports after failed peace talks
The latest news and live updates from India's stock market today, including Sensex and Nifty 50, rupee-dollar and crude oil prices, as well business news from India Inc.
India's stock market fell on Monday, tracking losses across Asia as crude oil prices surged above $100 a barrel after weekend talks between the US and Iran failed to yield a deal to end the war in West Asia. The Nifty 50 fell 0.86% to 23,842.65 and the Sensex slid 0.91% to 76,847.57. Both indexes regained some ground after dropping about 2.1% earlier in the session. Fifteen of the 16 major sectors fell. The broader small-caps and mid-caps shed 0.5% and 0.6%, respectively....Read More
The India Volatility Index jumped to 20.5 from 18.8 on Friday.
“We don't think it is fair to expect a deal (between Iran and the US) in one sitting. From markets' perspective, the recovery last week indicated that worst is over for Indian equities unless there is a significant escalation,” Arun Malhotra, fund manager at CapGrow Capital, told Reuters.
The equity benchmarks had risen about 6% last week, marking their strongest weekly performance in more than five years as investors took comfort from a fragile US-Iran ceasefire.
“The stock market continues to derive limited support from last week’s ceasefire framework, which remains intact for now and is encouraging selective buying interest along with a buy-on-dips approach,” V.K. Vijayakumar, chief investment strategist at Geojit Investments Ltd., said over email. “This comes despite an initial negative reaction to the breakdown of US–Iran peace talks and announcement of a US naval blockade in the Strait of Hormuz…”
Stocks in the News Today
• Reliance Industries Ltd. dropped 2.6% after the government raised export duty on diesel and aviation turbine fuel.
• Tourism, paint and refiners fell as investors gauged the impact of higher crude oil prices on margins.
• Auto stocks slid 2.1% after a draft of Delhi's new EV policy proposed sweeping exemptions for EVs to curb air pollution, compounding concerns over potential supply disruption from the Iran war.
• EV-linked stocks gained, with Ather Energy, JBM Auto and Olectra Greentech rising 5.2%, 1.9% and 2.5%, respectively.
Domestic markets will be closed on Tuesday for Ambedkar Jayanti. Trading will resume on Wednesday.
Sensex Nifty LIVE: DMart shares can fall up to 50%, Emkay warns
Shares of Avenue Supermart Ltd., the operator of DMart stores, can halve in value in a bear case scenario, according to Emkay.
The Mumbai-based brokerage has initiated coverage of the stock with a “sell” rating and a base target price of ₹3,700 apiece, with a warning that the stock can slump up to ₹2,200.
With a forward P/E valuation of 70 times, the stock is pricing in a business that DMart needs to become and not what it currently is, Emkay said. India's quick-commerce firms, Swiggy Ltd. (Instamart) and Eternal Ltd. (Blinkit) are now pricier by only 4% to 13%.
Sensex, Nifty 50 crash at Opening Bell
At 9:15 am, the 30-share S&P BSE Sensex 2.08%, or 1,613.09 points, to 75,937.20 points even as the wider NSE Nifty 50 shed 1.92% to 23,589 points. The Nifty Bank index was down 2.27% and Nifty Midcap 100 2.02%.
Sensex Nifty LIVE: Rupee opens lower versus Dollar
Rupee opens 65 paise lower at 93.28/dollar versus Friday's close of 92.73/dollar due to higher crude oil prices and ending of the 10 April deadline to sell long dollar positions.
Sensex Nifty LIVE: Stocks to watch today
• Enviro Infra Engineers Ltd. receives two projects worth ₹972 crore from the Swachh Maharashtra Mission Directorate.
• Torrent Pharma says the US Food and Drug Administration concludes inspection at Bileshwarpura Oncology facility with zero observations
• Vakrangee enters strategic pact with Indiafirst Life Insurance to offer life insurance solutions.
