Sensex drops over 300 points amid global headwinds
Sensex slides by 377 points to 73,867 on Monday. Hindustan Unilever, Tata Motors, ICICI Bank, Tech Mahindra, SBI, and Wipro dip over 1% in trading.
Mumbai: BSE Sensex is trading down by more than 300 points as the markets face headwinds from global factors.
Sensex is trading at 73,867 points, down by 377 points on Monday. Hindustan Unilever, Tata Motors, ICICI Bank, Tech Mahindra, SBI, and Wipro are down more than 1 per cent in trade.
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V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said that there are many headwinds that will weigh on markets on Monday including the renewed conflict in the Middle East, proposed changes in the India-Mauritius tax treaty and the hotter-than-expected US inflation.
“Partly these negatives are in the price since a retaliation from Iran was expected and the higher US inflation was discounted by the market on Friday. Signals from the crude market indicate that the Iran-Israel conflict is unlikely to escalate,” he said.
Investors have to be guarded since the element of uncertainty is high during a tense situation like this, he added.
IT stocks will be resilient on the back of better-than-expected numbers from TCS and a promising outlook for FY 25. Banking stocks will exhibit strength since the results will be good and valuations are fair, he said.
Devarsh Vakil – Deputy Head of Retail Research, HDFC Securities, said the Israel-Iran conflict, domestic and global economic macroeconomic data, crude oil prices, January-March quarter results for FY24, general elections 2024, and global cues are likely to keep investors on their toes and will guide market direction this week.
