Last week witnessed weakness in the share market, and on Friday, the last trading day of the week, the Israeli attack on Iran further fueled investor anxieties.
Share Market Update: The share market remained weak last week due to global tensions and selling by foreign investors. The Sensex and Nifty continued their volatile ride, with Friday witnessing the most significant impact from escalating tensions between Iran and Israel. This resulted in a decrease in investors' risk appetite, leading them towards safer investment options.
However, some stocks saw significant buying. Investors showed increased interest in stocks like Jubilant Ingrevia and Shipping Corporation of India (SCI). Market experts believe these stocks may see an upswing on Monday.
Geopolitical Tensions Fuel Market Weakness
Following Friday's Israeli attack on Iran, global markets experienced a wave of anxiety. This directly impacted the Indian market, which witnessed selling pressure throughout the day. Both the Sensex and Nifty declined, particularly shares of companies with significant West Asian trade links.
Vinod Nair, Head of Research at Geojit Financial Services, believes global instability and cautious foreign investors are contributing to the weakness in the Indian market. He stated that market stability cannot be expected until geopolitical tensions ease.
Crude Oil Price Surge Adds to Concerns
The conflict in the Middle East isn't limited to the share market; it has also caused a sharp surge in crude oil prices. Brent crude has neared $76 per barrel, its highest level this year. If this continues, it could negatively impact the economy of import-dependent countries like India, potentially leading to increased inflation.
Investors Shift to Safer Options
Given the rapidly changing economic and geopolitical landscape, investors are increasingly prioritizing safer options over riskier ones. This explains the recent increase in investments in gold and government bonds.
However, some company shares remain b, and experts believe these stocks are likely to rise despite the overall market weakness.
Jubilant Ingrevia: A Favored Stock
Jubilant Ingrevia, a company in the specialty chemicals and pharmaceuticals industry, was among the top-traded stocks on the BSE on Friday, with a turnover of ₹2,043 crore. Investors showed significant interest in this stock, attributed to the company's improving financial position and b fundamentals.
Furthermore, the pharmaceuticals and chemicals sectors are viewed as safe investments due to their consistent global demand, regardless of global conditions.
SCI: Rising Demand and Strong Growth Outlook
Shipping Corporation of India (SCI) was another top-value stock last week, with a turnover of ₹1,973 crore. This company is involved in maritime freight transport, and its privatization is underway as part of the Indian government's strategic plan.
Investors see dual potential in SCI: rising global logistics demand and potential value unlocking, making it an attractive investment.
Trading Volume Provides Insights
NSE and BSE trading volumes show that both SCI and Jubilant Ingrevia were popular among investors. SCI's trading volume on the NSE was 8.63 crore shares, while Jubilant Ingrevia's volume was comparatively lower but higher in value, suggesting institutional investor participation.
Stocks Under Pressure
While some stocks showed strength, others faced selling pressure. Investors booked profits in stocks like Tata Teleservices, IREDA, InterGlobe Aviation, and Reliance Power. BSE data shows that 4,122 shares were traded on Friday, with 2,595 declining and 1,401 rising.
Future Outlook
The market's direction will largely depend on international events, crude oil prices, and the US Federal Reserve's policies. An escalation of the Iran-Israel conflict would further negatively impact the share market. However, India's retail inflation rate remaining below the Reserve Bank of India's target in May is a positive sign for investors.
