Sensex plunges 500 points; Nifty falls below 22,150 on geopolitical concerns. TCS, Infosys decline by over 1%.

Photo-Reuters

The Indian stock market kicked off on a subdued note, following the downward trend set by Asian counterparts, amid growing apprehensions fueled by geopolitical tensions in the Middle East. Both the S&P BSE Sensex and NSE Nifty opened lower, with the Sensex shedding 488.61 points or 0.67 percent to reach 72,911.17, while the Nifty slipped by 132.97 points or 0.60 percent to 22,139.55.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted two key factors influencing market sentiment: economic concerns and geopolitical tensions. He pointed to the rising US bond yields, particularly the 10-year yield surpassing 4.6 percent, which dampened expectations of rate cuts by the Federal Reserve. Elevated bond yields typically signal lower prospects for equities, prompting accelerated selling by foreign institutional investors (FIIs) in emerging markets like India.

In light of these developments, Dr. Vijayakumar suggested a cautious approach for investors, advocating a wait-and-watch stance while recommending long-term accumulation of high-quality large-cap stocks during market corrections. He noted that further corrections could potentially align valuations of large caps, particularly in sectors such as banking, IT, autos, capital goods, oil & gas, and cement. Additionally, with metal prices showing resilience, metal stocks were anticipated to remain sturdy.

The market dynamics extended to midcap and smallcap segments, which mirrored the losses witnessed in headline indices. The Nifty Bank, reflecting the broader banking sector, experienced a decline of 0.90 percent, reaching 47,344.07.

Several stocks garnered attention due to notable developments. Jio Financial Services shares saw a surge of over 3 percent following a 50:50 Joint Venture (JV) agreement with BlackRock. Happy Forgings witnessed a rise of over 4 percent after securing a significant order worth Rs 500 crore from a global manufacturer. VST Industries shares surged nearly 2 percent post block deals, while Marksans Pharma observed a growth of over 3 percent subsequent to MASSACHUSETTS INSTITUTE OF TECHNOLOGY's acquisition of 66 lakh shares. Bharti Hexacom shares also rose over 3 percent after receiving a 'buy' rating initiation from Jefferies.

On the global front, stocks registered declines, accompanied by a strengthening dollar, as robust U.S. retail sales data for March reinforced expectations of a cautious stance by the Federal Reserve on interest rate cuts. Rising geopolitical tensions further tempered risk appetite, contributing to gains in gold and oil prices. Attention shifted to China, with anticipation surrounding GDP data release.

In conclusion, while market participants remained vigilant amid prevailing uncertainties, investors were urged to exercise prudence and seek advice from certified experts before making investment decisions. As the market landscape continued to evolve, staying informed with the latest updates remained crucial for navigating through dynamic market conditions and making informed choices.

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