Following Iran's retaliatory strike on Israel, benchmark stock market indices experienced a notable downturn, with most indices closing in the red.
The S&P BSE Sensex declined by 1.14% to 73,399.78, while the NSE Nifty50 fell by 1.1%, settling at 22,272.50.
This downturn resulted in significant losses for investors, with 44 out of the Nifty50 stocks and 12 out of the 13 major sectors experiencing declines.
Samir Bahl, CEO of Investment Banking at Anand Rathi Advisors, highlighted concerns about the potential conflict between Iran and Israel, which could adversely impact oil pricing and put pressure on the Indian markets in the short term. However, he emphasized that India's strong economic fundamentals and growth trajectory remain intact over the long term.
Small-cap stocks dropped by 1.73%, and mid-cap stocks declined by 1.57% after showing stronger performance compared to the benchmarks earlier in April.
Among the Nifty50 list, ONGC and Hindalco emerged as the top gainers. ONGC surged by 5.33% following optimistic coverage and a high price target by Jefferies, while Hindalco rose by 2.35% due to global aluminum price increases resulting from trading restrictions on new Russian commodities by the U.S. and UK.
Despite the market downturn, analysts view this as an opportune moment for long-term investors with a strong risk appetite to consider entering the market. Pravesh Gour, Senior Technical Analyst at Swastika Investment Ltd., suggested that the recent correction in the Sensex presents a favorable entry point for such investors, highlighting a potential opportunity for long-term gains.
