Benchmark stock market indices tanked on Thursday as investor sentiment dampened over President Donald Trump's fresh speech on Iran war, mentioning the US will hit Iran hard in the coming weeks.
"We’re going to hit them extremely hard. Over the next two to three weeks, we’re going to bring them back to the Stone Age, where they belong," Trump said.
He added that Iranian oil infrastructure remains a possible target, saying the US “could hit their oil” if needed.
At the same time, the US President said diplomatic channels remain open, noting that discussions are ongoing as Washington weighs its next steps.
The S&P BSE Sensex tumbled 1,401.01 points to 71,733.32, while the NSE Nifty50 tanked 439.55 points to 22,239.85 as of 9:27 am.
Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that with President Trump’s declaration 'we are going to hit Iran extremely hard in the next two to three weeks', market sentiments have again turned negative.
"Brent crude spiked around 5% to $105 and the US 10-year bond yield again firmed up to 4.36 percent negatively impacting gold and silver prices, though marginally," he added.
After the opening bell, HCL Technologies Ltd was the only stock in the green among the early movers, rising 0.08%.
Sun Pharmaceutical Industries Ltd saw the sharpest fall, dropping 4.52%. Indigo Ltd declined 3.93%, Adani Ports and Special Economic Zone Ltd was down 3.52%, NTPC Ltd slipped 3.19%, and Eternal Ltd fell 3.13%, showing broad-based weakness in early trade.
"Meanwhile, FPIs continued selling heavily with a sell figure of Rs 8331 crores on April 1st. The high crude price, the widening trade deficit, the fear of declining remittances and sustained FPI selling are acting cumulatively to put high pressure on the rupee which continues to decline despite RBI’s decisions on restrictions on dollar futures deals," said Vijaykumar.
"President Trump’s statement that “we will finish the job in two to three weeks” cannot be taken at face value since the president has been notoriously inconsistent in all his views. He can change his position anytime," he added.
Vijaykumar further added that the March auto numbers reflect great resilience in the sector, and this has the potential to keep auto stocks relatively strong even in an otherwise weak market.
Source: India Today