📉 Sensex Today: Geopolitical Tensions and Oil Price Surge Rattle Indian Markets
Indian stock markets have opened the week on a cautious note as global geopolitical tensions flared up over the weekend. A sharp spike in oil prices and worries over possible disruptions in West Asia have investors treading carefully on Dalal Street.
🔴 GIFT Nifty Signals Gap-Down Opening
The GIFT Nifty hinted at a negative start for the Indian indices as tensions rose in West Asia. The US has joined Israel in attacking Iranian nuclear facilities, leading to a ripple effect across global equity markets. While the situation seems contained for now, investors remain jittery over possible Iranian retaliation and the impact on oil supplies.
🛢 Oil Prices Surge: Brent Crosses $81
Brent Crude prices briefly touched $81 per barrel in early trading hours before settling slightly lower. With the threat of the Strait of Hormuz closure — a crucial route for global oil shipments — oil prices are expected to remain volatile. Goldman Sachs has warned that if supplies are disrupted significantly, Brent Crude could even spike up to $110 per barrel.
Union Petroleum Minister Hardeep Singh Puri has tried to ease market concerns, stating that India has diversified its oil imports and there is no immediate threat to domestic supply.
🔍 Stocks in Focus
1. Oil & Gas Stocks:
Due to the oil price surge, energy companies like ONGC, Reliance Industries, and Indian Oil Corporation are likely to see heavy action.
2. Defence Sector:
With geopolitical risks rising, defence-related stocks may benefit from anticipated higher spending. Keep an eye on Bharat Electronics, Hindustan Aeronautics, and other public-sector defence units.
3. Indian IT Companies:
IT majors like Infosys, TCS, and Wipro are expected to react to Accenture's Q2 results. Despite Accenture posting a 7% YoY revenue growth and raising its guidance, weak bookings could weigh on sentiment.
4. Small Finance Banks (SFBs):
The RBI revised Priority Sector Lending (PSL) norms for SFBs. While this could reduce the pressure of meeting high PSL targets, near-term impact on profitability and growth could still play out.
📈 Jefferies’ Stock Picks
Global brokerage Jefferies has issued Buy ratings on several stocks, including:
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Bharti Airtel (Target ₹2,350): Strong growth potential and re-rating opportunity.
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Cholamandalam Investment (Target ₹1,800): Monsoon-driven recovery expected; good long-term outlook.
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KFin Technologies (Target ₹1,460): Growth post-Assent acquisition; 20% profit CAGR expected.
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Polycab India (Target ₹7,150): Robust earnings potential and expanding market share in cables & wires.
🔎 Macroeconomic Highlights
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May Core Sector Growth: 0.7% (down from 1%)
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Steel Output: 6.7% vs 4.4% in April
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Cement Output: 9.2% vs 6.3% in April
These figures reflect mixed signals from India’s industrial sector, possibly indicating that macroeconomic recovery remains patchy.
🌍 Global Market Snapshot
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Dow Futures: Recovered slightly from -350 to -130 points
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Asian Markets: Down 0.5–1% due to rising geopolitical stress
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Nasdaq & S&P Futures: Also trading in red
The broader global sentiment remains weak as uncertainty looms over how Iran will respond and whether oil supply chains will be disrupted further.
📊 Conclusion: Cautious Start Amid Rising Global Risks
Investors should brace for a volatile trading week as the situation in West Asia develops. Sectors like oil, defence, and IT are likely to drive market movements. While domestic fundamentals remain relatively stable, global cues, particularly from the US-Iran conflict and oil prices, will dominate headlines and influence investor sentiment.
Stay tuned to live updates, and don’t forget to monitor your portfolio closely. It’s a time to stay alert, informed, and cautious in the markets.
Reference from:-https://www.cnbctv18.com/market/stock-market-live-updates-sensex-nifty-50-today-midcaps-nifty-bank-us-israel-iran-war-oil-tyre-paints-aviation-defence-it-stocks-share-price-liveblog-19624997.htm