Mumbai, Apr 15: The stock market commenced trading on Monday in negative territory, mirroring global concerns over the escalating tensions in the Middle East.

At the opening bell, both the Sensex and Nifty indices plunged, reflecting investor apprehension amidst geopolitical uncertainties.
The Sensex dropped by 887.82 points, or 1.20 per cent, to 73,357.08, while the Nifty declined by 181.75 points, or 0.81 per cent, to 22,337.65.

Among the Nifty companies, 5 witnessed advances, while 45 registered declines.

Notable gainers included Hindalco, ONGC, TCS, Nestle India, and HCL Technologies, whereas BPCL, Coal India, Tata Consumer Products, Tata Motors, and Adani Enterprises were among the top losers.

Across Asia, equities faced downward pressure, reaching a six-week low amid concerns surrounding the Middle East situation, disappointing bank earnings, and expectations of prolonged higher interest rates by the Federal Reserve.

Major benchmarks in Hong Kong, Japan, and South Korea registered declines, while mainland China's energy sector saw modest gains.

Varun Aggarwal, founder and managing director, Profit Idea, said, "Although global markets demonstrated some stability following an unprecedented attack on Israel, tensions remained palpable. Oil prices experienced slight relief amid speculation of contained conflict, with Brent crude stabilizing around USD 90 a barrel. Conversely, aluminum and nickel prices surged after the imposition of new sanctions on Russian supplies by the US and UK."

Investors are navigating through uncertainties such as persistent inflation and interest rate hikes, with the Middle East crisis adding a layer of volatility.

Expectations of oil prices surpassing USD 100 per barrel loom, with potential flight to safe-haven assets like Treasuries and gold, alongside further stock market declines.

As Wall Street's earnings season kicked off, providing insights into the US economy's resilience amid uncertain interest rate trajectories, major banks like JPMorgan Chase & Co., Wells Fargo & Co., and Citigroup Inc. reported mixed results, reflecting the impact of funding costs and consumer behavior in a high-rate environment.

As the trading day progresses, market participants remain vigilant, closely monitoring geopolitical developments and their implications on global markets, while also assessing corporate earnings for further market cues.

(ANI)

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